Romanian Govt OKs 2011 State Budget

Finance Minister Gheorghe Ialomitianu said investments will increase from 33.9 billion lei (EUR1=RON4.3110) to RON35.1 billion and the number of jobs is estimated to increase by 23,000 jobs.

The minister said the social security budget continues to be unsustainable and its deficit will have to be covered from the state budget with RON13.9 billion.

The 2011 state budget also ensures a subsidy of over RON3 billion for the unemployment budget.

Revenues from VAT collections are to increase from RON39 billion to RON46 billion, while excise revenues are to increase from RON17.4 billion to RON18.4 billion by lowering tax evasion and aligning cigarette excises to EU norms, the minister said.

All ministries except those of Labor, Agriculture, Environment, Finance, Regional Development and Transports will get lower budgets than this year.

Pensions, including the minimum guaranteed pension, will be kept unchanged throughout the year and social security contributions will not be reduced.

Local authorities will receive less money from VAT collections and funds for wages and social aid will also be reduced. Local authorities will also be banned from starting any new investments unless the ones underway are completed.

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