Gov’t approves second budget rectification this year

The government has approved on Wednesday the second budgetary rectification this year, Finance Minister Anca Dragu announced, adding it is a positive rectification, which ‘efficiently’ reflects the management of public money and the economic growth.

The rectification has considered a redistribution of funds that cannot be spent by the end of 2016 in order to ensure the funding of ongoing programmes, the Finance Ministry informs.

The first state budget and the social security rectification this year was made in August. PM Dacian Ciolos said at the time it is for the first time in many years that the government approves a budget rectification “without political fingerprints” in an election year.

“We have approved today the second budget rectification this year. It is a positive one, the second time a positive one, reflecting the management of public money and the economic development. We have managed the macro-economic balances, offering confidence and predictability to investors. We have met the budget deficit limit for 2016, i.e. 2.8% of GDP by cash and 2.95% by ESA methodology,” Fin Min Anca Dragu said during a press conference at Victoria Palace.

According to the minister, the GDP grew by 5.2% in H2 “following the positive influence of domestic demand”, whereas the investments growth “was obvious during the second quarter of H2.”

“It should be highlighted the increase of the gross added value in all economic sectors: agriculture, an increase of over 10%, services – 7%, constructions – 4.9%, industry – 1.8%,” Anca Dragu said.

During the first eight months the industrial production volume was larger by 1.1% than the level during the same period last year, the constructions volume was by 2% higher, the minister said.

She added exports grew in nine months by 4.3%, whereas imports grew by 6.8% against last year.

“Foreign investments amounted to EUR 2.7 billion, up by 18.6% against the same period last year,” Anca Dragu said.

During the first ten months the consumer prices fell on average by 1.73%, whereas annual inflation in October fell by 0.43%.

The minister added the number of unemployed has decreased in the first nine months from 450,000 to 429,000, the average gross income is on a growing trend from RON 2,681 when the budget was elaborated up to RON 2,815 by the end of 2016.