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Iulian Olescu

1 Februarie 2019
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Defense receives 2% of the Gross Domestic Product as a result of commitments made to NATO.

State budget for 2019

iulian-olescu

State budget for 2019, published by Public Finance Ministry, is built on a Gross Domestic Product of over one thousand billion lei, an economic growth of 5.5% and a deficit of about 2.55%.  Annual average inflation was estimated at 2.8%. Several amounts of money would be earmarked for investment, Health and Education. Budget also foresees a new increase in pensions this autumn.

Defense receives 2% of the Gross Domestic Product as a result of commitments made to NATO. A decrease in funds would be made either at the Ministries of Business Environment, Communications and Energy.

Consolidated general budget revenues projected for 2019 are estimated at 341.4 billion lei, or 33.4% of GDP. The highest revenues are forecast for social insurance contributions, VAT, excise duties, salary and income tax.

Spending of the consolidated general budget for 2019 is estimated to 367.5 billion lei, which is 35.9% of GDP. The largest shares in the Gross Domestic Product are covered by social care and staff expenditure.

According to the Executive, main objectives of 2019 budget are support of public investments by allocating 46.8 billion lei, Health - approximately 5 billion lei higher compared to 2018, which means an increase of 12 % in the budget of the Ministry of Health as well as in the National Health Insurance House, and Education, which received in addition from the state budget, compared to last year, about 9.8 billion lei, representing an increase of 47 % to cover wage and investment increases. Budget for 2019 also includes allocation of 2% of GDP for the Defense, in line with commitments made to NATO partners, the necessary sums to raise pensions by 15% from September on were secured and public institutions have the amount of 318.8 million lei for financing the actions of Romania’s Presidency of the EU Council.

Ministries for the Business, Communication and Energy Environment have been allocated lower amounts compared to 2018.

Source:RRA.Translated by Miruna Matei

 

Etichete Proiectul de buget pe 2019Ministerul Finanţelor

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