First budget revision of 2017, approved by Government

13 September

The first budget revision of 2017 was approved today by the Government, given an economic growth of 5.8 percent on the first semester, which determined an increase of the GDP by 21.9 billion lei, according to the estimations of the National Prognosis Commission, from 815.2 billion lei to 837.1 billion lei. The revenues of the general consolidated budget increase effectively by 1,060.7 million lei, the expenditures of the general consolidated budget increase by 1,705.2 million lei and the budget deficit remains at 2.96 percent of the GDP, according to cash methodology.

All public institutions have fully secured the necessary funds to cover operating expenses. Also, the budget revision ensures the payment of increased salaries for various categories of public personnel which were approved this year, the extension of granting scholarships to students throughout the academic year, the unfolding of the "Start-up Nation-Romania" Programme to stimulate the setting up of SMEs, the start of the selection of state-aid beneficiaries aimed at boosting investments with a major economic impact, the down payment of funds to support farmers.

Extra funds are earmarked through this year’s budget revision, as follows:

Extra amounts for local budgets amounting to 680.1 million lei are earmarked effectively mainly for:

350 million lei for the payment of wages, salary increments, pre-university teaching staff allowances;
87. 8 million lei to fund the expenditure of public centers for persons with disabilities;
110.9 milllion lei for the payment of carers’ allowance;
75.0 million lei to fund the Programme for schools(whereby pre-school pupils and the first to the eighth graders receive fruits, vegetables, diary and bakery products )
2.4 million lei for lifeguard services

The Healthcare Ministry was earmarked an extra 431 million lei for the staff payment, mainly medical personnel of the medical units.

The funds of the Ministry of Agriculture and Rural Development were increased by 1.8 billion for the direct payment schemes per area. These amounts will ensure the full down payment for setting up crops in 2018. Furthermore, the co-funding of the projects submitted within the National Rural Development Programme 2014-2020 financed by the EAFRD will also be ensured.

An extra 1.2 billion lei was earmarked for the Internal Affairs Ministry:

- to ensure wage rights and military pensions of policemen;

- to ensure the maintenance in order to keep aircraft operational;

-  the procurement of protection equipment for policemen.

Extra 250 million lei earmarked for the Ministry for Business Environment, Trade and Entrepreneurship, in order to complete the European funds (500 million lei) for the Start-up Nation Programme.

795 million lei earmarked for the Ministry of Labor and Social Justice for ensuring pensions and social assistance rights.

2,464 million lei earmarked for the Public Finance Ministry — General Actions for pre-funding from the state budget in case of temporary unavailability of European funds.

The budget revision doesn't have impact on the budget of the National Defence Ministry.

Budget cuts were mainly operated at the Ministry of Regional Development, Public Administration and European Funds (-1,980 million lei), the Transport Ministry (-6,249.1 million lei), the Communications and Information Society Ministry (-303.4 million lei), mainly from the amounts corresponding to projects funded from European funds, motivated by the late approval of the budget for 2017, late procurement procedures, which led to a low rate of budget execution for the first eight months of this year. The Ministries where cuts of the budget loans were operated, did not have cuts in commitment appropriations accordingly, in order not to impact the process of contracting projects financed through European funds and the investment works. The cuts concern only budget loans (cash) that can no longer be used in the next 4 months.

Moreover, commitment appropriations worth 638 million lei were also included in the budget of the Public Finance Ministry — General Actions, for the "State aid for funding investment projects " Programme, in order to start the process of selecting the state aid beneficiaries to boost investments with a major impact on economy.


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