Budget adjustments leave public officials without salary raises
- 21.06.2012 14:44
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The government made adjustments to the 2012 State Budget, reducing the revenues target by 334 million lei (1.5%) and planned spending by 425 million lei (1.9%), and leaving public officials without the promised salary raises, Info-Prim Neo reports.
Finance Minister Veaceslav Negruta noted that in the first months of this year the accumulated revenues have been lower than expected, partially reflecting the moderation of economic growth, which constituted in the first quarter just 1%. According to estimates, revenues for the entire year will be by roughly 900 million lei smaller than initially planned. In particular, 400 million lei will be missed from VAT on imports and 95 million lei from alcohol and beer excises. A further 260 million lei will be missed from foreign sources.
The Finance Ministry plans to recover part of the missed revenues by issuing two mobile 4G licenses, accept imports of cars older than seven years, and increase the cost of gambling licenses by 60% and other licenses by 30%. These measures are expected to produce 400 million lei.
Concerning spending, personnel expenses were reduced by 110 million lei and this involves delaying salary raises for public officials. The so-called capital and investment spending however will rise by 27 million lei to 4.5 billion lei.
Prime Minister Vlad Filat said some issues need to be further discussed before the amendment is heard in parliament tomorrow, June 22. He advised his Cabinet colleagues to take into account all realities, including the economic developments. “We must demonstrate responsibility and avoid the unfortunate experience of other countries. We must spend according to the actual revenues at our disposal”, stated Vlad Filat.
With the adjustments approved by the Cabinet, the 2012 State Budget looks as follows: revenues – 21,330,082,500 lei; spending – 21,039,082,500 lei; deficit – 906 million lei (by 91 million less).
