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The third budget amendment: allocations for debts, cuts for the presidency, the parliament and the ministry of foreign affairs
The third budget amendment of this year increases the budgets of the ministries of justice, agriculture, transports, education, defense, mainly for the payment of the debts following judicial decisions for the budget paid employees, but cuts from the budgets of the presidency, the parliament, the foreign affairs, the economy with a deficit of 2.2%.+
The amendment made as an exception by the government, by notwithstanding the law is determined by the results calculated for the interval 1 January – 31 October 2014, which show a surplus of 0.29% of GDP against a deficit of 1.8% of GDP for the same period of the previous year.
The government shows, in its amednement draft that the economic results bring arguments in favour of the possibility of economic growth for the whole year of 2.6% against 2.2% as it was estimated in the state budget law.
The incomes and the expenditure of the general consolidated budget will be increased on balance by 1.3 billion lei, the deficit of the general consolidated budget keeping its nominal value of 14.7 billion lei and as share of the GDP at 2.2%.
The ministry of justice will get 414.5 million lei mainly for the payment of the judicial decisions regarding salary rights, the Public ministry will get – 208.2 million lei ( out of which 205.8 million lei for the judicial decisions regarding salary rights or the people employed in education and 2.4 million for investment at the headquarters of prosecutors’ offices) the ministry of agriculture – 174.1 million lei ( mainly for the judicial decisions regarding salary rights for the personnel as well as for funds for the judicial decisions of the Agentia Nationala de Imbunatari Funciare)the ministry of transport – 168.5 million lei (mainly for the finalisation of projects such as ISPA, for the payment of special tickets for some categories and for the payment of airborne transport which were not done in time), the ministry of education will get 140.6 million (for the payment of the judicial decisions for salary rights out of which 111.0 million lei for the personnel in university institutions) the ministry of national defence – 73 million lei ( the extra of 100 million lei for material acquisition, services, current repairs and capital repairs for fighting equipment and military equipment, with the purpose of increasing the operational capacity of the Romanian Army and the reduction by 27 million lei of the expenditure with personnel as a result of the savings achieved), the ministry of internal affairs – 35.4 million lei (mainly for the payment of the judicial decisions for salary rights, for the financing of the restauration of historical monuments and for the Culture Palace in Iasi)the National Authority for restitution – 457 million lei ( for the payment of compensations established by tribunals).
And the Romanian Intelligence Service (14.1 million lei) and the Service for Special telecommunications (2.7 million lei ) will benefit from supplimentary allocations.
The increase of income from social insurances due to the payment of judicial decisions with salary rights has as an effect the increase of the income from contributions of the budget of state social insurances, the budget of unemployment and the budget for the national fund for health insurance. As a result, the budget of the ministry of work will be reduced by 847.4 million lei which represent the balancing transfer to the budget of state social insurances and the budget of unemployment insurance and the budget of the ministry of health will be reduced by 251.2 million lei which represent the balancing transfer to the budget of the national fund for health insurance.
The budget of the ministry of regional development and public administration will be diminished by 667.4 million lei but the local budget will be supplimentarily funded with sums taken from VAT worth 2 billion lei for the payment of the sums included in judicial decisions, the financing of the salary expenditure, bonuses, and other salary rights according to the law, as well as contributions to the personnel in schools, the financing of the rights of personal assistants of the people with disabilities or their monthly allocation.
Another 726.7 million lei will be allocated to the town halls for the payment of debts.
Budget reductions will be operated to the presidency (1 million lei) the Senate (357,000 lei), the Deputies Chamber (3.3 million lei), the ministry of foreign affairs (18.8 million lei) the ministry for information society (2.2 million lei) the ministry of economy (36.2 million lei) the permanent election authority (4.2 million lei).