International Monetary Fund representatives come to Romania to talk about budget cuts

A technical team of the International Monetary Fund (IMF) and the European Commission (CE) is expected in Bucharest today, July 22, to talk to the Finance Ministry about the first budgetary adjustment this year, according to Capital. The rectification could take place in August, after talks with the foreign experts, instead of July 30 as it was initially planned. It is certain, however, that it will be a negative adjustment, as the Government hasn’t achieved its planned revenues in the first months of the year. The budget revenues for this year are expected to be some EUR 565 million lower than initially estimated and the state will also have to pay some EUR 565 million higher for arrears and penalties established in court, Capital has calculated. In addition to this, the Government also has to compensate the EUR 270 million decrease in social security revenues due to the social security tax cut planned for the fourth quarter. This will result in lower budget for the ministries, especially education and transports. A EUR 90 million expense for the Comarnic-Brasov freeway will also be canceled. editor@romania-insider.com