The State Budget under Debate
The draft budget for 2017 is to reach Parliament for debates by January 25th.
Leyla Cheamil, 16.01.2017, 13:08
The main concern of the Romanian Government these days is the 2017 draft budget. The current Cabinet intends to submit it to Parliament for debate by January 25th. The ministries of health, education and transport would get more under this new budget. Additional funds are also envisaged for the Defense Ministry. “The commitments that we have made as a NATO member country must be observed, namely that 2% of the GDP should go to the army” said in a televised interview Romania’s Prime Minister Sorin Grindeanu. On the other hand, the ministries of communication and energy, the Government’s General Secretariat, the Senate and the Chamber of Deputies would get less. Sorin Grindeanu has stated that the budget strategy was built on data provided by the National Forecast Commission and will observe the deficit target of 3% of the GDP.
Sorin Grindeanu: “For 2017 we are looking at a GDP of 815 billion, a 5.2% economic growth rate, a 1.4% inflation rate and some 180,000 new jobs. These things include the measures that we took during our Government session a week ago. Revenues in 2017 are expected to stand at 253.1 billion, and expenditure at 277.2 billion. We are talking about a difference of 24.1 billion between revenues and expenditure, which means a deficit below 3%.”
A part of the opposition has voiced skepticism as to the way in which the Social Democrats will be able to keep their electoral promises without exceeding the 3% budget deficit target. The president of the Save Romania Union, Nicusor Dan, has said: “As regards the budget as a whole, we will make a decision when we see it. The only thing I could anticipate is that, according to our economic experts, it’s impossible for the Social Democratic Party to keep its electoral promises and still maintain the budget deficit at 3%. Judging by how the Social Democratic Party has started, it seems willing to spend heavily but, if it does that, the consequence would be either a very big deficit, a huge debt burden or a high inflation rate.”
However, the Social Democrats are confident there is enough money to implement the measures announced during the election campaign. The decisions recently approved by the Government include raising the minimum salary from 280 to 320 Euro, as of February 1st. Also, artists and employees of theatre and entertainment institutions will get 50% more. The Government has also increased the value of the pension point, as of July 1st, by 9%, accounting for approximately 220 Euro.
(Translated by Mihaela Ignatescu)
