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Government approves 2007 budget

Vineri, 13 octombrie 2006, 0:00

The Romanian government approved the 2007 state budget on Friday - the first budget for Romania as a EU member state. Thus, the budget also includes the obligations the country as as a EU member and is based on forecasts that Romania will report a 6.4% economic growth, a 2.4% average salary growth and a budget deficit of 2.8% of the GDP next year.

PM Tariceanu said the philosophy behind the new budget is based on investment programs and projects.

The level of budget incomes for 2007 is set at 38.1 billion euro, compared to 18.3 billion in 2004. And the level of public spending is expected to reach 38% of the GDP, compared to 38.6% in 2006.

Health and education will receive their largest chunk since 1990. The education system will receive 5.2% of the GDP, with 4.12% going to the health system.

And in 2007 agriculture will receive 2.3% of the GDP, compared to 1.8% this year. Most of the money will go on agriculture development programs and community policies.

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