Revision: The pension budget to get RON 5.5 bln

The decision made by the government at the end of last week comes after the International Monetary Fund (IMF) approved raising the budget deficit target to 7.3 percent from 4.6 percent at the beginning of this year, because revenues fell by RON 17.4 billion (some €4.11 bln).

Minister of Finance Gheorghe Pogea said that without this revision, Romania’s budget deficit would have exceeded eight percent. Following this revision, revenues total 31.6 percent of gross domestic product (RON 157.2 bln / €37.2 bln), while total expenses make up 38.9 percent of GDP (RON 193.7 bln / €45.85 bln), considering GDP forecast of RON 497.3 bln (€117.7 bln).

The Executive cut the budgets of several ministries and public institutions by RON 1.4 bln (€0.33 bln), and supplemented the budgets of five ministries, with the Ministry of Labor the main beneficiary, with additional funds worth approximately €1.425 bln. The pension budget will receive RON 5.5 bln (€1.3 bln) in subsidy from the state budget, and a further RON 487 million (€115.3 mln) for the two percent increase as of October. A additional RON 900 mln (some €213 mln) have been allocated for infrastructure projects, of which RON 500 mln (€118 mln) for road infrastructure and RON 400 mln (€95 mln) for school infrastructure and county roads.