Government to slash infrastructure spending in new budget revision

Romania’s Finance Ministry has developed a project for a second budget revision to take place this year, staying within the limits of the budget deficit target of 3 percent.

“Economic results to date support the possibility to reach a nominal GDP value of RON 949.6 billion, compared to the 907.9 billion estimated for the initial 2018 budget and the RON 945 billion estimated during the first budget revision. Therefore, the new budget revision project will lead to the increase in general consolidated budget incomes by RON 228.9 million, while spending will increase by RON 365.6 million,” the Finance Ministry explains in a statement.

Additional funding has been approved for the following institutions:

Public Finance Ministry: + RON 2.69 billion, of which RON 1 billion in interest rates, RON 671.6 million for Romania’s contribution to the EU budget and RON 700 million to the government’s reserve fund
Labour and Social Justice Ministry: + RON 787 million, mainly for state benefits for children and rights of the disabled
Health Ministry: + RON 211.5 million, mainly for salaries paid by the state to units providing emergency care
Justice Ministry: + RON 138.5 million, of which 100 million for staff expenditures
Regional Development and Public Administration Ministry: + RON 85.2 million; funds ensured for carrying out programs and projects with external non-reimbursable financing in the 2014-2020 Regional Operational Program (+ RON 98.4 million)
Internal Affairs Ministry: + RON 70.6 million; + RON 70.6 million; savings have been identified with staffing and RON 116 million have been ensured for paying military state pensions
The National Fund for social health insurance’s spending is boosted by RON 600 million to ensure the sums required for the settlement of medical services and medical drugs
State Social Insurance: + RON 45.4 million
Unemployment Insurance: + RON 82.6 million.

Funds will be cut from the following ministries, due to the spending status of projects mainly carried out through European funds: