Romania's Government approves 2011 state budget

The Romanian Government approved the 2011 state budget in a Cabinet meeting late Monday and the bill will be forwarded to the Parliament, according to Mediafax newswire. Finance Minister Gheorghe Ialomitianu said investments will increase from RON 33.9 billion (EUR 7.8 billion) RON 35.1 billion (EUR 8.1 billion) and the number of jobs is estimated to increase by 23,000. All ministries except those of Labor, Agriculture, Environment, Finance, Regional Development and Transports will get lower budgets than this year. Pensions, including the minimum guaranteed pension, will be kept unchanged throughout the year and social security contributions will not be reduced. The minister said the social security budget continues to be unsustainable and its deficit will have to be covered from the state budget with RON 13.9 billion - EUR 3.2 billion. The 2011 state budget also ensures a subsidy of over RON 3 billion (EUR 697 million) for the unemployment budget. Revenues from VAT collections are to increase from RON 39 billion (EUR 9 billion) to RON 46 billion (EUR 10.6 billion) , while excise revenues are to increase from RON 17.4 billion (EUR 4 billion) to RON 18.4 billion (EUR 4.2 billion) by lowering tax evasion and aligning cigarette excises to EU norms, the minister said. Mediafax