Romania’s PM says Govt. earmarked EUR 10 bln for investments this year

Romania’s Government has earmarked over EUR 10 billion for public investments this year, prime minister Viorica Dancila said on June 12 at the Upgrade Romania conference, organized by DC News, Hotnews.ro reported.

Out of this, EUR 1 billion was earmarked for the Sovereign Investment and Development Fund -- a program by which the central Government finances the projects proposed by the local administrations.The Government also endorsed 26 public-private partnership projects.

In the next two years, Romania’s growth will be based on investments in strategic sectors of the economy, the prime minister added.

PM Dancila mentioned the 5.7% increase in the net investments in Q1. Indeed, the gross fix capital formation rose by 5.4% year-on-year as well. However, there is no evidence that it was the Government that pushed up investments in the first quarter of the year. On the contrary, the Government’s capital expenditures plunged by 20% year-on-year to nearly RON 3.3 billion (EUR 0.7 bln) in the quarter and the transfers from the European Union’s budget over the same period dropped by 6.7% year-on-year to less than RON 2.2 billion (EUR 0.47 bln).

The statistics office INS reported the total net investments in the economy in the first quarter at RON 17.3 billion (+5.7% year-on-year). The growth was driven by 20% advance of investments in new constructions (comparable prices) while the purchase of new equipment contracted by 10% year-on-year.

(Photo source: Gov.ro)