Government cuts investments

12/09/2012 00:00

While waiting for the conclusion of the privatization process, the
government has planned an alternative variant of the Budget 2012,
dictated by the need to keep the public debt under control.

The new draft published by the Ministry of Finances shows the budget expenses cut with 11.7 billion ALL or 170 million USD, compared to the plan in the beginning of the year, and most of them touch directly the public investments.

According to this variant, the public investments are cut with 6.7 billion ALL, going down to 63.1 billion ALL. This is the lowest since 2007, and when compared with the GDP it goes to the lowest level of the last 7 years, going down to 4.6%.

The budget cuts are dictated by the failure to realize the incomes, for as long that the privatization result is still unclear. According to the official data of the Ministry of Finances, the total budget revenues for this year are expected to rise to 344 billion ALL, or 11.7 billion ALL lower than what was predicted in the beginning of the year.

This situation has imposed cuts in all public expenses, in order to not allow an increase of the budget deficit beyond the legal limit established by the Parliament, what would risk the legal ceiling of the debt. The reviewed budget is based on the expectancies of the Ministry of Finances for this year. This variant is not official yet, until it will be approved by the Parliament.

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