Romanian government approves budget revision

The government approved a budget revision at its Wednesday meeting, keeping the deficit target at 4.4 percent. Official data from the government confirm that economic growth will reach 1, 5 percent of GDP this year. Increased funds from the budget will be used for investments and arrears payments, said Gheorghe Ialomitianu, Finance minister. Prime-minister Boc presented the main ministries which will benefit from increased budgets.

Ministry of Transportation and Infrastructure
A supplement of RON 300 million will be used for continuing infrastructure works and for compensating debts from subordinated state-owned companies. Also, further arrears should be prevented from accumulating in 2012.

Ministry of Regional Development and Tourism
A further RON 300 million will be used for sustaining investments

Ministry of Public Health
The government directed RON 300 million for the Health Ministry and Health Insurance Agency. Further RON 150 million will be allocated on the basis that specific reform measures are implemented: The claw-back tax on medicament producers and distributors, establishment of generic medicaments system, adopting the legislative measure of co-payment and the elaboration of new legislation regarding the minimum package of healthcare services.

Ministry of Agriculture and Rural Development
A total of RON 735 million will be allocated for the Guarantee Fund, a precondition for absorption of EUR 626 million of EU funds, for improving rural infrastructure.

The government has supplemented the social insurance budget by RON 74 million, ensuring that pension payments are financially sustained through the end of 2011.