The government approved on Saturday the planned budgetary modifications, Romanian Finance ministry Gheorghe Pogea announced. As a direct consequence, Romania's GDP might drop by 8 to 8.5% late this year, Pogea said. The deficit will register, by the end of the year 7.3% of GDP, compared to 4.6%, as initially estimated. The inflation target is 4.3%.
Here are some of the most important declarations:
the budgetary modification amounts to 5.25 billion lei
- VAT revenue dropped by 4 billion lei due to a drop of economic activities
- the state will insure necessary financial resources for pensions
- we decided to allocate another 900 million lei for infrastructure works
- Consolidated budget revenues dropped this year by 17.4 billion lei (representing 3.5% of GDP) compared to initial estimates
- after the modifications, revenues amount to 31.6% of GDP and spending to 38.9% of GDP
Ministries will have to cut spending according to the following list:
- Development Ministry by 347 million lei
- Education Ministry by 154 million lei
- Finance Ministry by 205 million lei
- Health Ministry by 113 million lei
- Environment Ministry by 108 million lei
- Youth Ministry by 78 million lei
- Communications Ministry by 43 million lei
- Tourism Ministry by 30 million lei
