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First budget rectification this year, approved

The Government in Bucharest has green lighted the first budget rectification of 2014.

First budget rectification this year, approved
Foto: rri.ro

Articol de Radio România Internaţional, 04 August 2014, 11:02

The first adjustment of the 2015 budget is positive, which means that no cuts will be operated.

The Environment Ministry, initially set to cash in by 25 million lei less than last year, will now receive 50 million lei, for construction works aimed at preventing flooding.

The amount might be increased depending on the damage assessment report in counties hit by flooding.

In 2015, the health sector will receive more money than this year, because the chronic under financing of this sector is believed to be the cause of the slow pace of reform.

The Health Ministry will get almost 500 million lei for national health programs and the national emergency system, while the National Health Insurance Authority will get 170 million lei.

The ministries of education, defense, economy, transport and labor have been allotted larger amounts for 2015.

Also, the Standing Electoral Authority will benefit extra funds for the staging of November’s presidential elections.

It is precisely the nearing of elections that has prompted the center-right opposition to criticize the first budget rectification, arguing it serves the interests of the ruling coalition, controlled by Social Democrats.

The latter are also criticized for not having a solid economic strategy for this first budget projection, but rather some electoral interests.

The Government, however, says it has considered a 2.8% economic growth as against last year’s 2.2%, more money to the state budget as well as an increase in the estimated nominal GDP, from almost 660 billion lei to over 662 billions.

The next budget rectification is expected to take place at the end of September.

Meanwhile, central and local authorities are trying to find ways to curb unemployment.

The estimated level of unemployment in the month of June 2014 was 7.1%, slightly smaller than the previous month.

According to the National Statistics Institute, the number of Romanians aged over 15 who are currently looking for a job stands at 700 thousand. 8% of them have attended university studies, 7.7% are men and 6.4% are women.

The number of unemployed people aged over 25 accounts for 74.3% of the total number of jobless Romanians.

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