Finance Ministry data indicates that last year’s revenues amounted to 31 percent of GDP. The estimates included in the governing program of the current ruling coalition (Social Democrats and Democratic Liberals), expenses in 2008 amounted to 35.5 percent of GDP.
Thus, both revenues and expenses are similar for 2008 and 2009, although budget revenues are likely to drop significantly compared to last year, according to specialists. Sources added that 8 percent of GDP could be allocated to retirement expenses, not including any pension increase. A further 2.8 percent are set to be allocated to agriculture, including co-financing for the National Rural Development Program. Investments in the Armed Forces could amount to 1.8 percent of GDP, while expenses with banking interest, payments, project co-financing and EU contributions will make up 2.5 percent of gross domestic product. To maintain the budget deficit below 3 percent, education could receive less than 6 percent, and the health system under 4 percent of GDP. According to Finance Minister Gheorghe Pogea, if all demands for fund from ministries were considered, the budget deficit would amount to 12 percent of GDP.
