The government adopts budget bill
Healthcare, education and investments are the priorities of the government in Bucharest according to its budget bill for 2018.
Roxana Vasile, 07.12.2017, 13:58
Healthcare, education and investments are the priorities of the government in Bucharest if we look at the amount of funds these areas have been allocated in the 2018 budget bill adopted on Wednesday. The government has based its calculations on a 5.5% economic growth rate, a 3.1% annual inflation rate, a budget deficit level of less than 3% of the GDP and an average net salary income of 2,614 lei, the equivalent of 570 euros. The budget bill for next year is a good one and based on figures that are not overly optimistic, said Prime Minister Mihai Tudose at the start of the government meeting.
He also said Romania’s GDP exceeds 200 billion euros for the first time: “We are consistent when it comes to our priorities: healthcare, education and infrastructure. We have allocated 23.6% more funds to agriculture, which has been one of the main engines of growth this year.”
Finance Minister Ionut Misa has provided more details about the ministries that will receive more money in 2018: “The budget of the Defence Ministry will grow by 11.3% compared with 2017, which accounts for 2% of the GDP, in keeping with Romania’s commitments to NATO. The Education Ministry gets a 240.9% increase, which also covers the salary rights of pre-university staff beginning in 2018. The Healthcare Ministry will get 4.6% more funds than in 2017.”
The finance minister also said the budgets of the Chamber of Deputies and the President’s Office will grow by 29 and 20%. respectively. The 2018 budget bill takes into account a 9% rise in the net minimum and average wage, a rise in pensions by 10% and in the minimum pension by 23% as of July 1st. The disability allowance is also set to increase by 30% as of January 1st. Moreover, the budget bill ensures the necessary resources to grant holiday vouchers to all public sector employees. Another government goal for next year is the reduction of the unemployment rate to below 4% and an increase in the number of full-time employees by more than 200,000. With regard to the absorption of European funds, Mihai Tudose’s cabinet aims to attract 32% more funds compared with his year.
Mihai Tudose: “We aim to attract 28.4 billion lei in European funds in 2018. I believe we will even be able to exceed this realistic target, given that the projects implemented this year will reach maturity next year.”
The budget bill must now be adopted by Parliament before being signed into law by the president.
