Social and investment expenses perfectly correlate in 2009 budget, Prime Minister says

The draft state budget law for the next year provides for an optimal correlation between the social and investment expenses, says Prime Minister Zinaida Grecianai. The Premier said that 204.7 million lei was earmarked in the 2009 budget for creating a social assistance system. The social expenditure in 2009 will rise by 28% overall. Speaking about the main investments planned, Zinaida Grecianai mentioned the investments in the construction of roads and social-cultural facilities and for other areas of national interest. A sum of 560 million lei will be used for supporting the agricultural producers, in particular for planting new vineyards and orchards, while 6 million lei will go to launch the Energy Efficiency Agency and Fund. According to the Premier, the maintaining of the 0 tax on reinvested profit allows the entrepreneurs to save about 1.5 billion lei that will be also invested. There will be produced new, competitive products. Exports will increase and the trade balance will improve. The Prime Minister also said that the daft budget law for 2009 includes resources for fulfilling the state obligations in all the investment projects involving the World Bank and other foreign donors. Among these are the WB projects Competitiveness Enhancement, Energy II, Public Financial Management and projects in such areas as education, healthcare, improvement of public service quality. The draft state budget law for the next year approved by the Government provides for revenues of 17.734 billion lei and an expenditure of 18.308 billion lei. The deficit of 573 million lei will be financed from the money earned from privatization and foreign financing planned for investment projects, Info-Prim Neo reports.