The draft document estimates state budget revenues will decrease by 1.3 billion lei (EUR285.4 million) 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.
The Government cut the budgets of several ministries, as well as of the Senate, the High Council of Magistrates, the High Court of Justice and the public television and radio.
The institutions to receive extra funds are the ministries of Agriculture – RON400 million, Health, Interior – RON151 million, Education, Justice – RON45 million, Regional Development and Tourism, Culture – RON30 million, and the Romanian Intelligence Service (SRI).
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.
Romania’s consolidated budget posted a deficit of 7.17 billion lei (EUR1.57 billion) in the first nine months, equal to 1.18% of the gross domestic product, Finance Ministry data showed Thursday.
The gap is marginally wider from a deficit of RON7.11 billion, or 1.17% of GDP reported at the end of August.
Total revenue to the consolidated budget rose 7.2% on the year to RON141.1 billion in the first nine months of the year, while overall expenditure was up 1.9% in nominal terms to RON148.3 billion. (EUR1=RON4.5538)