Co-financing for EU-funded projects was cut by RON1.01 billion to RON4.91 billion. Spending on programs financed from the European Regional Development Fund was reduced by RON521.5 million, to RON1.19 billion, and financing for Cohesion Fund programs is RON395.5 million lower, at RON3.35 billion.
The ministry received extra RON21 million for road infrastructure maintenance, while funds for road infrastructure development were cut by RON105.2 million, to RON62.7 million.
Investments of state-owned companies were reduced by RON68.1 million, to RON1.57 billion, and ineligible ISPA expenses were lowered RON60.7 million, to RON805.9 million.
Goods and services expenses were reduced by RON809,000 to RON8.37 million, and staff expenses were cut by RON1.68 million, to RON20.2 million.
The Fiscal Council has recommended the Government limit spending on co-financing and keep a tight watch on the expenses of local authorities, so as to meet the year’s budget deficit targets. The target is 2.2% of the GDP in cash terms, or 3% of the GDP according to ESA95.
In its latest letter of intent to the International Monetary Fund, Romania’s Government pledged to limit spending on co-financing for EU-funded projects, following the interruption of reimbursements, and not to use money from the privatization fund or from Infrastructure Development for this purpose. (EUR1=RON4.466)