Romanian Govt. approves draft budget for next year

Romania’s Government has approved the draft budget for next year and will send it to the Parliament for the final approval. The Government expects the total budget revenues to increase next year by some RON 30.9 billion (EUR 6.8 billion) compared to this year, to RON 287.5 billion (EUR 63.2 billion). Most of the extra revenues will go into health, education, and investments. The budget allotted for health will increase by 17%, the education budget will go up by 16%, and the public investments should increase by 42%. At the same time, the Government will continue to allot 2% of the GDP to the defense sector, and aims to increase EU fund absorption by a third, to EUR 6.3 billion. The total budget spending for 2018 should thus reach RON 314.5 billion (EUR 69.1 billion), or 34.6% of the GDP and the budget deficit should remain under 3% of the GDP. The Government estimates a 5.5% increase in the GDP next year up to RON 907.8 billion (EUR 200 billion) and an annual inflation of 3.1%. Romania’s National Bank (BNR) expects an inflation of 3.2% for the end of 2018. The Government also estimates an average exchange rate RON 4.55 per EUR. On November 21, the euro reached a record level of RON 4.65 and analysts don’t expect it to go down. The number of unemployed will reach 351,000 next year and the average net wage will amount to RON 2,614 (EUR 564.3), according to Government estimates. 2018 budget: Romania’s Govt. plans to increase spending by 12% next year editor@romania-insider.com