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Government approves 2009 state budget

de Radu Rizea
Vineri, 30 ianuarie 2009, 1:34 English | Top News

The Government approved on Thursday the state and social insurance budget for 2009, Prime Minister Emil Boc announced. The budget is built around the following indicators: 2.5% economic growth, 2% budget deficit, 5% inflation rate and a 144.7 billion Euros GDP. Finance Minister Gheorghe Pogea announced that the social insurance contribution would increase 3.3%, without mentioning if the measures refer only to employers or to employees as well.

Then anti-crisis plan, in brief:

- 20% of the budget will go to massive investments in infrastructure;
- The Government's debt is a priority. Without paying the remaining debt, the economy is blocked;
- The re-invested profit will not be subject to taxes, starting in 2010. The impact of this decision will be 3.44 BN RON, representing 0.59 of the GDP;
- Compensating VAT returns with VAT to be paid will be possible;
- CEC and Exim Bank will be capitalized;
- There will be a fund to help small and medium enterprises;
- The "Wrecks" program (buying back old cars in exchange for price decrease when buying a new car) will continue and will grow;
- The general budget will include the income of state agencies and institutions;
- The minimum pension will be 350 RON, growing in two steps - on May 1 and October 1;
- The retired persons will have the medication compensated by 90% for those with pensions under 600 RON, necessary funds will be gathered from the tax on vice;
- For the temporary unemployment under 3 months, the social contributions are not paid.

Other data:

- Budgetary personnel will have wages increased by 5%;
- The budget for Education will be 6% of the GDP;
- The budget deficit for 2008 may be 5.2%, after the last calculation;
- Excises for alcohol and tobacco will increase in 2009 up to the level that should have been reached in 2012.



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