Government approves adjustments to 2011 Budget

Incomes and expenses of the 2011 State Budget were each decreased by 38.4 million lei to 19,048.8 million and 20,315.7 million lei, respectively, in a bill approved by the Government on Friday, Info-Prim Neo reports. Deficit remained unchanged at 1.2 billion lei Finance Minister Veaceslav Negruta said the measure came after a review of the current governmental spending, which identified reserves and saved money. These funds will be reallocated to other priority areas until the end of the year. For example, it has been proposed to supplement the farm subsidization fund by 150 million lei and allocate extra 220 million lei to the social insurance fund, including 204 million lei to fill the deficit. Local authorities are also expected to receive a bonus of 42 million lei in subsidies. Negruta went on to add that the prospects of higher incomes didn't come true, partly due to unfavorable circumstances both domestically and internationally; another reason was the modified procedure of calculating VAT in agriculture. Parliament is to consider the document in an urgent manner.