The draft says state budget revenues are estimated to decrease by RON1.3 billion on the backdrop of lower revenues from the sales tax, the amounts received from the European Union as deductions for operated payments and the tax on income and wages, while expenses are estimated to increase by RON307 million to cover staff costs, various purchases and subsidies in the agricultural sector. The decrease in revenues from the sales tax, by RON1.3 billion, is also due to additional allocations of state budget funds, of around RON1 billion, to local authorities in order to carry out various social programs.
According to the draft, the Government expects state budget revenues to increase by RON210 million from excise duties, by RON908.2 million from the lease of 4G frequency bands, by RON685.7 million from untaxed revenues representing mainly the money cashed in from the central bank’s net revenues), and by RON90 million from taxes on profit, income and stock market gains from legal entities.
The draft also says staff expenses from the state budget will increase by RON59.8 million, costs with goods and services will go up by RON98.6 million and costs with subsidies in the agricultural sector will be hiked by RON143 million, as well as costs of RON450 million allowing counties countrywide to pay their debts. Also, RON147 million will be allocated to cover hospitals’ debts overdue by more than 90 days.
The country’s consolidated budget deficit will be kept at RON13.6 billion, accounting for 2.2% of the gross domestic product.
The budget revision is based on economic data indicating an economic growth of “around 1%,” from an economic growth of 1.8% to 2.3% previously estimated for 2012.
The budget was last revised in August, when the Government allotted RON500 million to pay arrears to firms and RON100 million to city halls to pay wages. Funds for people with disabilities and their caretakers were also increased by RON100 million. (EUR1=RON4.5789)