Budget Adjustment

Health, development and agriculture are the main sectors benefit from the second budget adjustment this year.

Florentin Căpitănescu, 21.11.2016, 12:38

These days, three
weeks before the parliamentary elections of December 11th, the
technocratic government in Bucharest is to approve the second budget adjustment
this year. Healthcare, development and agriculture will get the largest
amounts, aimed to support the funding of underway projects.

The money for
health, which is some 445 million Euros, are earmarked for the treatment of
patients suffering from liver cirrhosis
in various stages. Following this adjustment, large amounts will enhance
investments in school and road infrastructure, as well as funding for the
rehabilitation of water supply systems and sewerage.

Also, money will be used
for the ‘Warm meals in schools’ and
‘Fruits in schools’ pilot projects. 220 million Euros will cover the final payments
for farmers, and the local budgets will get some 375 million Euros to cover the
expenditure of the local public administration. The money earmarked for the
local administration will be also used for the balancing of local budgets.

Additional funds will also benefit the Labour Ministry, for the payment of
personal aids to people with disabilities, for supporting the child protection
system and the social welfare centers, as well as for social protection centers
for the disabled.

The defense and the interior ministries will get extra money
for the payment of due pensions, and the energy ministry will be helped to
close down two mines at the Hunedoara mining compound. According to the daily
Ziarul Financiar, these are expenditure and revenue adjustments to the
General Consolidated Budget, in keeping with the current level of the GDP for
2016.

The latest estimates show that the GDP has gone up to some 168 billion
Euros, which is 12 billion more than the value of the basis on which the budget
was built at the beginning of the year. This second budget adjustment has been
possible due to the economic growth rate that exceeded the forecast 4.1%,
reaching 4.8%. The analysis conducted by Ziarul Financiar also shows that the
Government estimates that the budget deficit will continue to account for 2.95%
of the GDP.