Govt. to spend more on social issues in 2009

The Government has approved the draft state budget for 2009, as the incomes are assessed to be 17.734 billion lei and the expenditures – 18.308 billion lei. The growth compared to the 2008 budget is 21% for incomes and 23% for expenses. The deficit of the state budget is planned to be 573 million lei and will be covered from the money to be obtained from privatizations and foreign financing. As Info-Prim Neo reports, Finance Minister Mariana Durlesteanu says the social expenditures remain a priority of the budget in 2009, too. “It's natural, since the Government's main objective is reduce poverty, to largely support the vulnerable groups, and there programs in this respect agreed with international financial bodies. On the other hand, they plan to invest 3.69 billion lei. They will finance, first, infrastructure projects, as roads, water supply systems, gas pipes, healthcare,” she specified. The Finance Ministry says the 2009 budget provides for supporting new programs and measures, as creating the system of social support – 204.7 million lei, fighting diseases – 55 million lei, giving dwellings to young families – 60.5 mln. lei, buying school buses – 12 million lei, country reintegration actions – 10 million lei, supporting political parties – 7.8 million lei, creating the Agency for Energy Efficiency Fund – 6 million lei, protecting the unemployed – 33.7 million lei. The state will pay a part of its debt worth 1.3 8 billion (8.9% of the incomes), of which 699.7 million lei will go for domestic debts and 684.34 million lei for external debts. The National Public Budget (state budget plus local budgets) will have incomes of 28.484 billion lei (compared with 25.361 billion lei assessed for 2008), and expenditures worth 29.189 billion (compared with 25.674 billion lei expected in 2008). The deficit of the National Public Budget is planned to be 705 million lei, what is 1% from the GDP. “Initially we planned a deficit of 1.3% from the GDP, but after consulting the IMF we decided to reduce this deficit, being convinced that this will enable us to counter possible consequences of the financial crisis now noticed in other countries,” Durlesteanu said.

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