Additional expenses requested by local authorities cannot be handled by the state budget for next year

The minister of Finance, Mihai Pop, declared Wednesday, September 13, that the additional expenses requested by the local public authorities exceed the real capacities of the next year’s state budget. According to him, the bill of the 2007 state budget has been approved according to strategic consideration of the Government, stipulated in the Economic Growth and Poverty Reduction Paper (EGPRP), other strategies and Governmental programs, and due to the requirement in a macroeconomic stability, especially a moderate of the inflation level. In 2007 the state budget will have expenses of over MDL 12.2 billion, meaning an approx. MDL 2 billion increase compared to last year. According to the minister, the expenses for the main sector will increase by 18.5%, for projects financed from external sources by 46.6%, and for those financed from special funds - by 8.8%. One of the main factors that had an input on the budgetary expenses increase for next year is the activity of the December 2005 Law regarding the wages in the budgetary system, with the cost estimated at MDL 1.3 billion. For investment projects MDL 1.59 billion will be allocated, a 42% increase, for merchandise and services – MDL 1.6 billion, or by 24,5% more than last year. For the payment of medical insurance fees for persons insured by the state MDL 1.19 billion are allocated from the state budget, by 19.3% more, for transfers with production purposes – MDL 617. 8 mil., by 10.3% more, especially because of the increased support of agricultural producers, as well as the boost in the road fund. For capital repairs MDL 193 million, or 14% more, will be allocated. The transfers to the population in the next year will surpass MDL 612 million, a 179 million or approx. 41.3% increase. The augments are due to the funds allocated for the militaries’ allowances, for the increase scholarship number and scholarship beneficiaries from study institutions, as well as other payment to other socially disadvantaged categories.