Under the law, the draft state budget for next year should have been sent to the Parliament by October 15, but the Government had to finish negotiations with the International Monetary Fund and waited for the European Commission to present its forecast on Romanian economic growth in 2012.
The 2012 general consolidated budget states total revenues of 195.3 billion lei (EUR44.7 billion) and total expenses of RON206.5 billion, which translates into a nominal deficit of RON11.2 billion, or 1.9% of the gross domestic product in cash terms, or under 3% according to European accounting standards.
Budget revenue is equivalent to 33.7% of the GDP, up 0.3 percentage points compared with this year. Social contribution, VAT and excise duties make up the largest share of the budget earnings.
The budget spending estimate for 2012 is RON206.5 billion, 35.6% of the GDP, compared with 37.8% of the GDP in 2011.
Budget resources allotted to investments will drop by RON1.3-2 billion in 2012 compared with this year, but the Government hopes to offset this decrease by raising the EU fund absorption rate by about 50%.
Subsidies will fall to 0.91% of the DGP, from 1.2 % of the GDP in 2011. Staff expenses will also be cut in 2012, to 6.9 % of the GDP from 7.5% of the GDP this year.
The Government might increase staff expenses within a cap of 7.2% of the GDP, if the economic situation allows for it. This means it might allot RON1.7 billion to RON1.8 billion lei to raise wages.
Romania’s economic growth in 2012 is estimated at 1.8%-2.3%. (EUR1=RON4.3620)