Government approves 2012 State Budget

“A derivative of the fiscal and social policies aimed at ensuring macroeconomic stability” – that is how Finance Minister Veaceslav Negruta labeled the 2012 State Budget, which was approved by the Government on Friday, Info-Prim Neo reports. Revenues to the State Budget are expected to amount to 21.36 billion lei, 11.9% up on this year. Spending was fixed at 22.16 billion lei, with a deficit of 797 million lei, which is expected to be covered by sales of state securities, privatization of public property, and through external financing. Negruta said the amount requested by the entities relying on the State Budget was by 1.5 billion lei more than the available resources. According to the minister, the 2012 State Budget was designed in a fashion so that the government could avoid critical budget situations like when the state is unable to deliver on its commitments. He further stated that the 2012 was socially-directed, as two thirds of revenues would go to cover social expenses. Meanwhile, economic expenses represent slightly over 13%. Revenues to the 2012 National Public Budget, which includes the State Budget, the Social Insurance Budget, the Mandatory Health Insurance Fund, and the budgets of administrative units, are expected to constitute 34.6 billion lei, with NPB expenditure set at 35.4 billion lei. The resulting deficit will represent 0.9% of the 2012 GDP, an improvement from this year's estimated 1.9%.