The bill to amend the state budget law for 2020 was passed by Parliament after being given two readings. In the new conditions, the budget deficit will represent 15.975 billion lei or 7.52% of the Gross Domestic Product. According to the Government, the necessity of amending the state budget appeared as a result of the economic effects of the measures imposed in the process of managing the epidemiological situation, IPN reports.
Under the bill, the state budget revenues will be decreased by 6.338 billion lei or by 14.3% to 37.798 billion, owing mainly to the reduction in taxes and duties and the inflows of grants.
The state budget expenditure will increase by 2.221 billion lei or about 1.6% to 53.773 billion lei. Given the priority costs in the period, the spending for healthcare will be increased by 1.1 billion lei, for social protection by 1.127 billion lei, for state services of a general purpose by 1.084 billion lei.
Attending the Parliament sitting, Prime Minister Ion Chicu said the changes resulted in the augmentation of the initial deficit of 8.559 billion lei to 15.975 billion lei. The structure of the deficit financing sources were also modified. The main changes here refer to the inflows of foreign loans and the issues of state securities on the primary market.
Answering MPs’ questions, the official said the road repair program was kept at 1.375 billion lei so as to improve the infrastructure with a direct impact on the quality of the people’s life and to create jobs.
