Romania's Government approves budget project for 2017

The Government approved yesterday evening the budget project for 2017, which provides the allocation of RON 16.3 billion (EUR 3.6 billion), or 2% of the GDP, for the Defense Ministry, as well as RON 39.4 billion (EUR 8.7 billion) for the investments financed from the budget, said the Finance Minister Viorel Stefan. The Health Ministry gets a budget of RON 33.8 billion (EUR 7.5 billion), up RON 3.5 billion compared to 2016, as well as commitment appropriations (amounts committed but not paid) of RON 3.9 billion. This represents 4.15% of the GDP. The Education Ministry is allocated a budget of RON 25 billion (EUR 5.5 billion), up RON 3.3 billion compared to 2016, namely 3.1% of the GDP. The commitment appropriations amount to some RON 580 million. The Labor and Social Protection Ministry gets a budget of RON 79.7 billion (EUR 17.7 billion), or 9.8% of the GDP. The money will be used to finance the increases in the gross minimum wage, and the minimum pension, and to finance the “First Rent” and “First Wage” programs. Compared to last year, the budget increased by RON 6.36 billion. The Transport Ministry gets a budget of RON 13.7 billion, representing 1.69% of the GDP. In the case of the Development Ministry, the budget amounts to RON 6.9 billion (EUR 1.5 billion), namely 0.85% of the GDP, less by RON 1.4 billion compared to 2016. Besides that, the commitment appropriations amount to RON 30 billion (EUR 6.6 billion). The money will be used to build 2,500 kindergartens and 2,000 schools, to provide running water, sewage services, medical services in rural areas, for the construction of 70 apartment blocks, according to the Government. The draft budget was based on an economic growth of 5.2%, an inflation rate of 1.4% and a net average salary of RON 2,274 (EUR 504). editor@romania-insider.com