Govt approves 2009 State budget

The government approved the Bill on the 2009 state budget that provides a 6 pct economic growth and a budget deficit of maximum 2 pct, Premier Calin Popescu-Tariceanu announced after the government meeting on Tuesday.

‘The state budget for 2009 provides the freezing of public institution expenses at the level of 2008. We decided to cap the outlays of some public institutions. Thus, we assigned the Ministry of Agriculture an extra RON 500 million for the fight of drought, the Ministry of the Interior and Administrative Reform gets a surplus of RON 200 million for its district heating projects, the Foreign Ministry receives by RON 57 million more to finance the newly established consulates in Spain and Italy. An amount of RON 122 million will add to the budget of the Justice Ministry to finance aid to low-income persons,’ said the Premier.

The head of the government mentioned that healthcare, infrastructure and the environment were not affected by budget cuts.

‘The cap refers to halting car fleet renewal or the acquisition of equipment for institutions such as the Prime Minister’s Chancellery, the government’s Secretariat General, the Presidential Administration, the Competition Council, Romania’s Court of Accounts, the National Council for the Study of the Securitate Archives – CNSAS, or the National Audiovisual Council,’ explained Calin Popescu-Tariceanu.

As far as the increase in the teaching staff’s wages is concerned, the 2009 state budget provides a 10 pct wage supplementation for this social category.

Next year’s general budget builds on a deficit of 2 pct of the GDP, an economic growth of 6 pct and an exchange rate of 3.6 lei for one euro.

The GDP is estimated at RON 578.5 bln compared to RON 505 billion for 2008.

Budget revenues are estimated at RON 224.8 bln and outlays at RON 236.3 bln.

‘This is a cautious budget to limit adverse economic effects. We do not give out money on consumption, but support investments,’ said the Premier.

The Law on the 2009 budget is open for debate and amendments by the next ruling line-up or Parliament, added the head of the government. AGERPRES