Budget for 2011 to set limits on personnel expenditure

The personnel budgetary expenditure this year will be limited to 9.5% of the GDP, Minister of Finance Veaceslav Negruta said when speaking about the continuation of the budgetary-fiscal adjustments initiated in 2010, Info-Prim Neo reports. According to Veaceslav Negruta, special attention will be devoted to personnel expenditure and the number of employees in the budgetary sector, both in the central and local public administrations. “The local public authorities enjoy autonomy, but we should not forget that all the administrative-territorial units form part of this state. The efforts made by the authorities should be joined with the efforts of the local public administrations,” said the minister. Limits on the personnel expenditure will be set in the budgetary sector in general and every area and institution in particular. Other structural reforms aimed at making the budget-funded sector more efficient will be commenced this year. Emphasis will be laid on the eduction sector, which is outsized according to the minister. “The reform will center on the strengthening of classes, schools and personnel. A large part of the possible budgetary savings and the financial support provided by the World Bank will go to increase teachers' salaries from September 1, 2011, provide vehicles for taking the children to school and improve the standards in education institutions,” said Veaceslav Negruta. The budget deficit in 2011 will be limited to 1.9% of the GDP and decreased the next years. The current budget expenditure in the GDP will be decreased by 1.6% compared with 2010. Thus, there will be more room for capital investment and social assistance intended for the underprivileged groups.