Healthcare, education and investments – Government’s priorities for the 2018 budget

06 December


Healthcare, education and investments are priorities of the draft budget for 2018, adopted on today’s Executive meeting.

The draft 2018 budget is built on a projection of a 5.5-percent economic growth, average annual inflation of 3.1 percent, an average exchange rate of 4.55 lei to the euro and a net average monthly wage income of 2,614 lei. The cash budget deficit is estimated at 2.97 percent of the Gross Domestic Product (GDP), while the ESA deficit is projected at 2.96 percent of GDP, with buget deficit to be kept at below 3 percent of GDP, in line with the Maastricht Treaty provisions.

Under the draft, government's revenues are estimated at 287.5 billion lei, by 30.9 billion lei higher than in 2017, being for the first time that Romania's GDP is expected to pass the 200-billion-euro level. Out of the 30.9 billion lei worth of additional revenue, 21.1 billion lei will go to the healthcare budget, which will increase by 17 percent over 2017; the education budget which will grow by 16 percent, and also to investment budget, which will have a 42-percent increase.

At the same time, the draft budget provides the necessary resources for granting holiday vouchers to all public sector employees, increasing by 9 percent the net minimum and average wages in the overall economy, both in the public and the private sectors, increasing by 10 percent public pensions from July 1 and the minimum pension by 23 percent.  With respect to people with disabilities, the budget provides for an increase by 30 percent in their monthly allowances from January 1.

One of the Government's main objectives for 2018 is to reduce unemployment to below 4 percent, and to increase the number of full-time employees by over 200,000. In this respect, the Government will back the development of the Start-Up Nation programme for another 10,000 companies, mainly owned by young people. At the same time, 4.5 billion lei of the national budget was allocated for state aid programmes that will start next year, which targets including the increase of Romania's exports by about 7.6 percent.

The Romanian Government is meeting its commitments to Romania's allies by allocating for the second consecutive year 2 percent of the GDP for defence spending and 53 million lei for an increase in the equity of defence companies.

Regarding the EU funds absorption, the Romanian Government has set to draw 28.4 billion lei (6.3 billion euros) in 2018, by 32 percent more than in 2017.

Budget spending for 2018 are estimated at 314.5 billion lei, which is 34.6 percent of the GDP:

The social assistance expenditure recorded the highest growth, due to measures adopted in the pensions field, increase in the social allowance for retirees and other social assistance rights which reach 98.6 billion lei, in 2018, namely 10.9 percent of GDP.

Staff costs amounted to 81.2 billion lei (8.9%), an increase by 11.6 billion lei compared to 2017, amid the implementation of the Framework Law on the remuneration of staff paid from public funds;

Goods and services amount to 39.9 billion lei (4.4% of GDP) in 2018, while public debt expenditure - 12.1 billion lei (1.3% of GDP) in 2018;

Expenditure on investments amounts to 38.5 billion lei (4.2% of GDP) in 2018, rising by 11.5 billion lei as compared to 2017.


THE BUDGET FOR 2018 - the amounts earmarked for each institution


MINISTRY OF NATIONAL DEFENCE: 18,164.9 million lei (increase by 11.3% compared to 2017). 2% of GDP was allocated for this ministry, thus ensuring the fulfillment of Romania’s commitment to NATO;

MINISTRY OF REGIONAL DEVELOPMENT, PUBLIC ADMINISTRATION AND EUROPEAN FUNDS: 6,208.6 million lei budgetary appropriations (increase by 30.6%  compared to 2017) and 38.343,0 million lei commitment appropriations;

MINISTRY OF TRANSPORT: 9.132,8 million lei budgetary appropriations (increase by 0,9% compared to 2017) and 30,911.5 million lei commitment appropriations;

MINISTRY OF NATIONAL EDUCATION : 23,794.4 million lei (increase by 240.9% compared to 2017); as of 2018, the salary rights of the state pre-university education employees will be paid from the Ministry’s budget;

MINISTRY OF HEALTH: 8,762.2 million lei (increase by 4.6% compared to 2017).

We specify that the National Health Insurance House has been allocated 33,769.0 million lei, by 4,530.0 million lei more than in 2017 - (increase of 15.5%);

MINISTRY OF CULTURE AND NATIONAL IDENTITY: 1,117.4 million (50.4% increase). 150 million lei of this Ministry’s budget were allocated for the financing of events, actions and projects occasioned by the Centenary of Romania (1918-2018) and of the First World War;

MINISTRY OF LABOR AND SOCIAL JUSTICE: 31,693.0 million lei (decrease by 13.2% compared to 2017). We mention that the decrease comes from the diminution of transfers from the state budget, for balancing the state social insurance budget, from 13,599.1 million lei in 2017, to 7,408.8 million lei in 2018;

MINISTRY OF FOREIGN AFFAIRS: 944.1 million lei budgetary  appropriations(increase by 21.9% compared to 2017) and 1.033.1 million lei commitment appropriations. Commitment appropriations were allocated in the budget of the Ministry of Foreign Affairs for the conclusion of contracts for the preparation of Romania's presidency of the Council of the European Union in 2019, in total amount of 194.9 million lei.


budget amounts to 23,522.1 million lei (increase by 23.6%);

MINISTRY OF INTERNAL AFFAIRS: budget amounts to 15,311.9 million lei,(increase by 20.7%);

THE MINISTRY OF JUSTICE: budget - 3,750.6 million lei (decrease by 0.8%);

PUBLIC MINISTRY: budget - 1,234.7 million lei (increase by 0.23%);

MINISTRY OF YOUTH AND SPORT: budget - 517.3 million lei (increase by  15.3%);

MINISTRY OF ENVIRONMENT: budget - 444.9 million lei (5.4 percent decrease);

MINISTRY OF COMMUNICATIONS AND INFORMATION SOCIETY :budget - 291.8 million lei, of which 170 million lei for the increase of the social capital at the National Company "Poşta Română" - S.A .;

MINISTRY OF ECONOMY: budget - 355.9 million lei, out of which 53 million lei for the social capital of economic operators in the national defense industry under its authority (increase by 104.9%);

MINISTRY OF PUBLIC FINANCE: budget - 4,569.4 million lei

(increase by 25.5%);

MINISTRY OF FINANCE - GENERAL ACTIONS: budget - 21,595.6 million lei (increase by 1.2%);

MINISTRY OF ENERGY: budget - 583.3 million lei (decrease by 36.0%);

SECRETARIAT GENERAL OF THE GOVERNMENT: budget - 1,336.3 million lei; (increase by 24.8%);

MINISTRY OF TOURISM: budget -63.4 million lei (increase by 39.8%);

MINISTRY FOR BUSINESS ENVIRONMENT, COMMERCE AND ENTREPRENEURSHIP: budget - 1.237,1 million lei (increase by 32,4%);

MINISTRY OF RESEARCH AND INNOVATION: budget -1.652,7 million lei (increase by 13,6%);

MINISTRY OF WATERS AND FORESTS: budget -438.9 million lei (increase by 26.8%);


budget - 8.9 million lei (increase by 16.8%);

MINISTRY FOR LIAISON WITH PARLIAMENT : budget - 7.3 million lei (0.7 percent decrease);

MINISTRY FOR ROMANIANS ABROAD: budget -25.4 million lei (increase by 44.6%);

PRESIDENTIAL ADMINISTRATION: budget - 57.6 million lei

(increase by 20.7%);

SENAT: budget - 196.0 million lei (increase by 30.3%);

CHAMBER OF DEPUTIES: budget - 436.2 million lei

(increase by 29.6%).


The draft national budget and the draft social security budget for 2018 will be submitted to Parliament to be debated and passed.


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