The Romanian government pledges increased public investments and slashed personnel expenses, starting 2012

Newsroom 10/08/2011 | 17:50

The Romanian government has approved today the fiscal and budget strategy for the 2012-2014 period, which includes macro-economic parameters agreed with the IMF, European Commission and World Bank. The announcement was made by the Finance minister, Gheorghe Ialomitianu.

The Romanian economy is expected to register a growth rate of 3.5 to 4 percent of GDP for 2012. According to Ialomitianu, GDP revenues will increase by 9 percent in 2012, compared to current values, while GDP expenses will also increase by 5 percent, due to a massive public investment plan.

The funds allocated for public investments are expected to reach RON 43 billion for 2012, RON 49.5 billion for 2013 and RON 55.7 billion for 2014. Personnel expenses will be gradually reduced year on year. Thus, they will reach 7.2 percent of GDP in 2012, 7.08 percent of GDP for 2013 and 6.79 of GDP for 2014.

Ialomitianu stated that the measures stipulated in the agreement with the IMF, European Commission and World Bank will continue. This means that fiscal consolidation, restructuring of state-owned companies and administration together with arrears payments will be top priorities for the government.

The strategy will have to be voted by Members of the Parliament this fall.