Cabinet harshens fiscal-budgetary policy

The Government approved modifications to the 2008 state budget. Finance Minister Mariana Durlesteanu says the intention is to harshen the fiscal-budgetary policy and to ease the run-up of the budget's pressure over the currency market, Info-Prim Neo reports. The expected estimations of the 2008 national budget, according to Durlesteanu, require a more austere fiscal position by reducing the budget deficit from 0.5% of the GDP to a balanced budget. The Government proposes to increase the basic incomes of the 2008 state budget with 340.6 million lei, and the expenses – with 124 million lei. After operating the changes, the budget deficit will decrease with 124 million lei and will be 99.7 million lei. The incomes are thought to be obtained from income taxes on entrepreneurship, from the VAT on imported goods and on external trade, from excises on goods as vodka, wine, jewelry, cars. The changes in the expenses area consist in directing them towards capital investments – circa 92 million lei. Investments are to be disbursed to: handicapped children rehabilitation Center – 25 million lei, the Giurgiulesti Port infrastructure – 8 million lei, Children and Youth Republican Center – 40 million lei etc. According to the draft bill, the means to be gained from privatization will be used for investment projects. The Finance Ministry is to be authorized to distribute subsidies to farmers.