Extra RON 9 bn expenditures for investments next year
Romanian government decided to put more accent on investment by allocating expenditures of RON 44.76 billion next year, by RON 8.7 billion more than in 2014, representing some 6.3 percent of GDP and a share in the total budget expenditures of 18.7 percent, up 3.2 percentage points from 2014, according to the Report on Macroeconomic Situation in 2015 and its projection for 2016 – 2018, which accompanies the draft 2015 State Budget Law, made public on Thursday by the Ministry of Public Finances. Most of the projects from the 115 priority investment list will be undertaken by the General Secretariat of the Government and the Ministry of Transport.
The total expenditures stipulated by the consolidated general budget in 2015 amount to RON 239.36 billion, representing 33.7 percent of GDP.
Prioritizing public investments will be consolidated to capitalize on the economic growth potential, the document reads.
According to the report, one of the commitments assumed by Romania to the International Monetary Fund and the European Commission consists in re-shifting public investment expenditures to achieve a gradual passage from investments financed entirely from national sources to investments co-financed from European Union funds.
“We also specify that this indicative prioritization does not entail excluding these projects from funding through annual budget laws, in compliance with legal provisions in force,” the report reads.
The domestic demand will be the drive of economic growth in 2015, with the growth pace investments to stand at 4 percent and the expenditures related to population’s end-consumption will increase by 2.8 percent, the document also reads.
“We are dissatisfied with the amount allocated to investment and this is the biggest problem of the 2015 budget and, in fact, was also on the 2014 budget (…) We will analyze the budget very seriously in our specialized committees and we will say our point of view in Parliament” National Liberal Party Co-President, Vasile Blaga, said.