Romanian Prime Minister Viorica Dancila previously announced the revision will be approved at the beginning of Monday’s Cabinet meeting.
Dancila said the act is a “positive revision that ensures the necessary amounts to pay salaries, pensions and all social allowances”. The PM added the revision will allot RON500 million to repair the infrastructure damaged by floods throughout the country this summer.
According to the draft budget revision published last week, the government estimates additional revenues to the consolidated budget of RON3.75 billion, additional expenses of RON3.9 billion.
It also estimates a higher gross domestic product, of RON1.031 trillion, for 2019, from RON1.022 trillion projected at the beginning of the year, thus keeping the deficit target at 2.76% of the gross domestic product, below the EU-limit of 3%.
The government expects higher revenue from profit tax collections, higher excise duties, as the government moved up a hike on cigarette duties, a tax on sugary drinks, and the tax on bank assets, whose estimated impact had not been included in this year’s state budget.
In terms of expenditure, the government planned to slash funds from education, agriculture, economy, environment, and transports. It also planned to cut back on the number of state secretary positions and freeze hiring in public administration.