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FinMin Misa on budget revision: There is a 1.326 billion euro deficit estimated in the national budget

Ionut Misa

There is an estimated revenue deficit of 1.326 billion lei in the national budget, according to the new budget revision, but there are increases in other budgets, Finance Minister Ionut Misa told the opening of a government meeting on Wednesday. "The revision has updated the government receipts were updated against the collections during the first seven months of the year, as well as the legislative measures approved so far this year. Thus, some components of the aggregate national budget recorded decreases in revenues, and I can give the example of the national budget with a 1.326 billion deficit, while revenues to other budgets have increased. I can mention here the social security budget, with a surplus of 663.1 million lei; local administration budgets, with a surplus of 1.979 billion lei which gives a total surplus of 1.06 billion lei , thus a positive revision. The aggregate outlays increased by 1.705 billion lei," Misa said.

He noted that an economic growth of 5.6 percent was predicated for the budget revision. "The 5.8-percent growth recorded in the first half of the year has led to a positive review of the 2017 economic growth from 5.2 percent projected at the beginning of 2017, to 5.6 percent now. Thus, the nominal value of the GDP [Gross Domestic Product] increased by 21.9 billion lei, from 815.2 billion to 837.1 billion. Given the circumstances, the Government made a positive budget revision while keeping the government deficit at 2.96 percent of the GDP. The aggregate outlays increased by 1.705 billion lei, while the deficit keeps at 2.96 percent of the GDP against the cash methodology," added the minister.

He also said that the revenues to the aggregate national budget increased by 1.06 billion lei, mentioning that the aggregate national budget consists mainly of the national budget, the local administration budgets, the public social security budgets, the unemployment insurance budget, the budget of the single national healthcare insurance fund, the budget of the institutions fully or partly financed from own revenues, the budget of the national road infrastructure management corporation. "All these budgets have to be taken into account. The outlays and receipts of the aggregate national budget is computed by aggregating these budgets after eliminating transfers between them, representing the consolidation process. Similarly, the reference indicator and the aggregate government deficit are also determined, " Misa said.

Under the draft 2017 National Budget Revision Ordinance posted on the website of the Ministry of Public Finance receipts to the 2017 national budget decrease by 1.326 billion lei and outlays by 347.7 million lei, while the deficit is increased by 978.8 million lei. As far as the aggregate national budget receipts are concerned, they are said to increase by 1.060 billion lei. The outlays from the aggregate national budget increase by 1.705 billion lei, while the consolidated general government deficit, in cash terms, remains at 2.96 percent of the GDP.

The finance minister announced last week that the Ministry of Agriculture, the Interior Ministry, the Presidential Administration, the secret services and the two chambers of Parliament are among the institutions to receive extra money at the current budget revision. On the other hand, the Ministry of Regional Development, Public Administration and European Funds (MDRAPFE), the Ministry of Transport and the Ministry of Communications and Information Society (MCSI) will have their budgets diminished as a result of the revision.






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