Priority given to social expenses in 2010 Budget

Social expenses will account for the most part of the governmental spending next year, as seen in the draft 2010 Budget that received Cabinet's approval at an extraordinary meeting on Saturday, December 5, Info-Prim Neo reports. The draft National Public Budget provides for expenses of 29.4 billion lei, by 1.6 billion lei, or 5.9 percent more than this year; and 32.5 percent will constitute social expenses, including salaries to government-funded employees, pensions, social benefits, subsidies to the Social Insurance Budget, Health Insurance Fund, and other social payments. Economic expenses will make up 5.3 percent, expenses on maintenance of public order and the country's security 2.5 percent, expenses on services 'for general purposes' will constitute 2.2 percent. Incomes are expected to amount to 24.9 billion lei, by 2.5 billion lei, or 11.2 percent more than the target for this year. The budget gap will be 4.4 billion lei, after recent adjustments of 5.34 billion lei, and will represent 7 percent of GDP, down by 2 percentage points on this year. The state budget will incur a deficit of 4.13 billion lei, the social insurance budget's deficit will be 263 million lei, and the budgets of the administrative units, like districts and municipalities, will have gaps totaling 74.6 million lei. The health insurance fund is expected to incur no deficit. As the budget bill shows, the state budget's incomes will be 15.19 billion lei (+ 2.09bn, 15.9%); with spending at 19.32 billion lei (+ 1.5bn, 8.9%). GDP is predicted to grow 1.5 percent, from 59.5 billion lei in 2009 to 64.3 billion lei in 2010, with inflation set at 5 percent. The reference exchange rate is MDL 12.53 per $1. Finance Minister Veaceslav Negruta described the draft budget as 'balanced and realistic', and which takes into account the existing economic state. Negruta also said the austerity of the budget requires strict observance of the financial discipline. After being endorsed by the Government, the budget bill is to be passed by Parliament to become a law.