Romania’s Parliament approved on December 22 the draft law on the state budget for 2018 with 255 votes “for” and 95 votes “against”.

The opposition parties criticized on Friday the budget for next year, which they said did not respect the structural deficit assumed by Romania through the fiscal treaty in 2012.

Varujan Vosganian, a Romanian MP from the co-governing party ALDE, replied that Romania has a small public debt to GDP ratio, under half the European average.

Lider Dragnea, the leader of the other co-governing party Social Democratic Party (PSD), said that this budget will continue Romania’s development and the measures bringing Romanians higher incomes.

Compared to the draft budget initially approved by the Government, the Parliament has supplemented the budgets of several institutions.

The largest amount, RON 350 million (EUR 75.4 million), was transferred to the Government's reserve fund. The money was taken from the budget allocated for Romania's contribution to the European Union.

An additional RON 60 million (EUR 13 million) was granted to the Government’s General Secretariat for financing of religious cults and another RON 5 million (EUR 1 million) for minorities.

The Ministry of Culture received an additional RON 8 million (EUR 1.7 million) to build the Union monument in Alba Iulia. The Energy Ministry got an additional RON 10 million (EUR 2.1 million) for a nuclear research program.

The public radio received RON 3 million (EUR 646,500) in addition to what the Government had initially allocated. The Ministry for Romanians Abroad was also allotted an extra RON 3 million (EUR 646,500).

The draft budget for 2018 was built on an estimated economic growth of 5.5%, an average annual inflation of 3.1%, an average exchange rate of 4.55 RON / 1 EUR and a net average monthly salary of RON 2,614 (EUR 563).

2018 budget: Romania’s Govt. plans to increase spending by 12% next year

editor@romania-insider.com