The Romanian Government approved the first budget revision for 2011, confirming the 1.5 percent economic growth this year, said the Romanian Prime Minister, Emil Boc. “The analysis made on the first six months of budgetary results show that the implementation of the consolidated budget ended with a deficit of 2.07 percent of GDP”, he added.

The Ministry of Transport has received additional funds worth RON 300 million (around EUR 71 million) for further infrastructure works, and for any debts of public enterprises, while the Ministry of Regional Development and Tourism's budget was also increased by about RON 300 million for investments.

In social activities, the Government supplemented the social security budget by RON 74 million (around EUR 17 million), after compensation has been made between funds, to ensure the payment of pensions by the end of this year. Boc also mentioned that budgets for ministries and institutions in the fields of defense and national security under "Staff costs" have been increased, as to secure the payment of the 5.5 percent pension contribution.

For health, the Government decided to allocate an additional amount of RON 300 million, while the Ministry of Agriculture and Rural Development's budget was also increased by RON 735 million (around EUR 173 million), money to be allocated to the Guarantee Fund for providing guarantees and conditions for absorption of about EUR 626 million in European funds.

The budget revision was agreed with the IMF, the European Commission and World Bank, and the budget deficit target was maintained at 4.4 percent of GDP, said the Finance Minister, George Ialomiţianu.

Irina Popescu, irina.popescu@romania-insider.com