Government cuts budget

The corrections start by increasing the economic growth. The weak progress has obliged the government to withdraw from the optimistic variant that was proposed in the beginning of the year, which foresaw an economic growth of 4.3% n 2012. In the new draft, the economic growth is decreased to 3%, which is among the lowest levels, admitted also by the government. But the crisis has not affected only the economic growth.

The revenues that the government is collecting from taxes and other financial sources are much lower than the optimistic predictions in the beginning of the year. Facing the increased public debt pressure, the government has surrendered by admitting to cut the business expenses.

Top Channel has learned that the new variant cuts 15 billion ALL, 4 billion of which come from operative expenses and the rest affects public investments and the money that will be saved by some other expenses. In the first five months of the year, the government collected 8.8 billion ALL revenues than the budget plan, and the situation has deteriorated even more in the last months, with 2.7 ALL less only for May.

The 15 billion ALL cuts are expected to balance the weak government finances. But the big question is related with the upcoming months, if the revenues will keep falling or not. The only hope of the budget is the privatization of public companies.

But even this source is not safe yet, since most of them are to be undergo the tender process, since the only privatization tender for the moment is that of the National Lottery, which will bring no revenues in the budget, after the government will sell it with a symbolic price. 

Top Channel