News 14 Jan 13

Romania Unveils Budget For 2013

Prime Minister says draft budget for this year will put Romania back on the path to economic growth.

Marian Chiriac
Bucharest

Romania’s centre-left government is planning to a growth oriented budget for 2013, with a target growth of 1.8 per cent and a public deficit of under 2 per cent.

“We want to end the circle of last four extremely difficult years by restoring Gross Domestic Product to its 2008 level,” Prime Minister Victor Ponta said, presenting the plan.

GDP is estimated to reach to around 140 billion euro this year, after dropping to 118.3 billion euro in 2009, when the financial crisis started to wreak havoc with the domestic economy, Ponta said. Revenue for 2013 is set at 46 billion euro, 3 billion euro lower than last year.

The government intends to tighten fiscal discipline, eliminate the waste of public funds and act on the principle of social equity.

“As salaries have already been restored to their pre-2009 level, before they were cut, no more pay hikes are expected this year,” Ponta added.

The government has allotted 10.2 billion euro to pay public sector wages and 11.1 billion euro will go on pensions.

The Prime Minister also said Romania is hoping to conclude a new, precautionary-type agreement with the IMF and the EU, when the ongoing one expires in March.

Romania depends on a 20 billion euro rescue package from the IMF, the European Union and the World Bank. It obtained the loan in May 2009 in exchange for agreeing to push through austerity measures aimed at taming the country’s yawning deficit.

An IMF mission is to come this month to Bucharest to hold discussions on the next review of the programme.

Talk about it!

blog comments powered by Disqus

Related Headlines:

hungarian-boycott-of-romania-s-holiday-revives-old-disputes-12-02-2016
02 Dec 16

Hungarian Snub to Romania Holiday Revives Tension

A Hungarian ministerial decision that the country's diplomats should ignore Romania’s National Day celebrations on December 1 - because they mark Hungary's loss of Transylvania - has breathed new life into an old dispute.

02 Dec 16

Bosniaks in Disarray Over Role in Srebrenica

02 Dec 16

Kosovo Tax Officials Admit Ties to Politicians

02 Dec 16

Turmoil in Montenegrin TV Sparks 'Plot' Claims

02 Dec 16

Vucic Picks His Runner for Presidential Race

02 Dec 16

Macedonian Parties Fuel Dreams of Pay Hikes

02 Dec 16

Germany to Back EU-Albania Talks, After Reform

01 Dec 16

Electoral Tensions and Democratic Woes

Premium Selection

ratko-mladic-s-trial-edges-closer-to-final-judgment-12-02-2016
02 Dec 16

Ratko Mladic’s Trial Moves Closer to Final Judgment

After accusations of genocide, ethnic cleansing, brutal detentions and a punishing siege, lawyers in the four-year trial of Bosnian Serb military chief Ratko Mladic begin to present their closing arguments next week.

sarajevo-siege-novel-celebrates-decency-under-fire-12-01-2016-2
01 Dec 16

Sarajevo Siege Novel Celebrates Decency Under Fire

Wartime Sarajevo-based correspondent Kevin Sullivan’s new novel The Longest Winter tries to reflect the humanity and courage of people living in the Bosnian capital during the 1992-95 siege.

30 Nov 16

Kosovo Town Feels Pre-Election Tensions

30 Nov 16

Abortion Rights Under Fire in Croatia

29 Nov 16

War Tourism Flourishes in Bosnian Capital

Latest News from the Balkans

02 Dec 16

Bosniaks in Disarray Over Role in Srebrenica

02 Dec 16

Kosovo Tax Officials Admit Ties to Politicians

02 Dec 16

Turmoil in Montenegrin TV Sparks 'Plot' Claims

02 Dec 16

Macedonian Parties Fuel Dreams of Pay Hikes

02 Dec 16

Germany to Back EU-Albania Talks, After Reform