Government allocates some 6.3% of GDP for investments in 2015; domestic demand to drive growth

The expenditures on investments in 2015 will amount to 44.76 billion lei, by 8.7 billion lei more than in 2014, representing some 6.3% of GDP and a share in the total budget expenditures of 18.7%, 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 Finance.

The total expenditures stipulated by the consolidated general budget in 2015 amount to 239.36 billion lei, representing 33.7% of GDP.

Prioritizing public investments will be consolidated to capitalize on the economic growth potential, the document reads.

According to the cited source, 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% and the expenditures related to population's end-consumption will increase by 2.8%, the cited document also reads.

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