Labour cost: steepest and largest increase in the EU. And mostly concentrated on non-business sector
Romania recorded in the first quarter of 2018 the highest labour cost increase among all EU member states, according to data released by Eurostat. With… Mai mult›
Company financing: Firms’ aversion to credit – at high levels. Most favourite banking product – account overdraft
The rise in interest rates and fees is becoming increasingly worrying for companies and maintains companies’ aversion to banking lending at high levels, according to… Mai mult›
“Everything in One Hand” project continues: Law which pushes Court of Auditors beneath Administration’s feet – adopted
The Senate adopted on Thursday the draft amending Law 94/1992 on the organization and functioning of the Court of Auditors, which contains amendments that could… Mai mult›
Government is hardly competing with private economy on banks’ money. Which are satisfied: less work, lower risks
The volume of government credit has increased about 10 times over the last 10 years, and the share in total banking investment in Romania… Mai mult›
2018 budget – official draft: Ministry of Finance counts on a 5.5% increase and an exchange rate of 4.55 lei/euro. Prime Minister Tudose has doubts
de Adrian N Ionescu , 4.12.2017
The state budget for 2018 drafted by the Ministry of Public Finance (MPF) counts on a decline in the economic growth only to 5.5% in 2018, compared to the level put forward by the National Commission for Prognosis for 2017 (6.1%), according to the draft law published by MFP.
The nominal Gross Domestic Product (GDP) is estimated at over RON 907.8 billion, with a projected average inflation of 3.1% (3.2% at the end of 2018) and a budget deficit (cash) stopped at 2.97% of GDP, and an ESA deficit of 2.96% of GDP, according to MFP document.
MFP built the budget on an average exchange rate of 4.55 lei/euro, according to analysts’ forecasts.
Prime Minister Mihai Tudose himself seems to question the level forecasted in the draft budget, saying on Thursday that it is still “under discussion”.
The number of unemployed would drop to 351,000 (451,000 people in October), and the net average monthly wage would increase to 2,614 lei, 12 lei up compared to October 2017.
Budget revenue projected for 2018 is estimated at RON 287.5 billion (31.7% of GDP).
“The largest shares in the total budget revenues in 2018 corresponds to the 10.1 % contributions, followed by VAT with 6.8%, excise duty with 3.3%, salary and income tax with 2.3% of GDP”, says the MFP’s summary on the 2018 budget.
Budgetary expenditures are forecasted at RON 314.5 billion (34.6% of GDP, although Romania cannot exceed a collection rate of 28% of GDP).
Prime Minister Mihai Tudose also said, regarding this chapter, that this is just a draft and that the provision on making savings of 10% compared to this year might not be mandatory for all public institutions.
Savings will be made “where it is possible. It is not possible, for example, in the health domain,” the Prime Minister said.
Another question raised Thursday by Mihai Tudose on the MFP’s draft refers to the holiday vouchers that might be granted, though, to public servants. Prime Minister gave the example of local administrations which can make the decisions they want if they “fall within the salary framework”.The destination of the expenditure, as currently drafted:
- Social assistance expenditure has the highest share in GDP (10.9%), which registers “the highest increase on the reference horizon”, up to RON 98.6 billion, because of the “measures taken in the pensions area, the increase in the social allowance for pensioners and other social assistance rights” which reach in 2018 to 10.9% of GDP;
- Staff expenditure amounts to RON 81.2 billion (8.9%), which means an increase of RON 11.6 billion compared to 2017, “in the context of the implementation of the Law on the remuneration of the personnel paid from public funds”;
- Goods and services, RON 39.9 billion (4.4% of GDP),
- Government debt expenditures, RON 12.1 billion (1.3%);
The Ministry of Finance promises investment expenditure of RON 38.5 billion (4.2% of GDP) in 2018, which represents an increase, at least theoretical, by RON13 billion compared to 2017, according to the official calculations.
Lăsați un comentariu
Fitch confirms Romania's rating at BBB- but warns: fiscal loosening is risky for macroeconomic stability
Fitch Ratings confirmed on Friday Romania's rating for long-term foreign and local currency debt at BBB-, with a stable outlook, but warned that fiscal loosening… Mai mult›
Finance Minister Eugen Teodorovici said at a press conference held in Bistrita that "a mechanism of this type is in progress”, a mechanism on tax… Mai mult›
AOAR - Economy against new Criminal Code: businessmen denounce excessive protection provided to officials who cause damages to economy
The Businessmen’s Association of Romania (AOAR) asks the ruling coalition to explain the mechanism by which, after changes introduced on Wednesday in the Criminal Code,… Mai mult›
Number of insolvencies increased by 12% in first five months. Suspended activities - plus 31%, dissolutions - plus 59%
The increase in the number of companies and PFAs in insolvency was 11.97% in the first five months of this year, compared to the same… Mai mult›
The investment needs in Romania's transport infrastructure exceed EUR 70 billion, while the available resources by 2030 are EUR 36 billion, according to the Transport… Mai mult›
Liviu Dragnea announces a dictatorship through ordinances: "Correct procedural approach through Parliament is wrong, from the law on investment fund to laws on the judiciary. We will be firmer and more radical"
"We decided to be much firmer and more radical. My way of having a correct procedural approach in the Parliament proved wrong. In the Parliament,… Mai mult›
Deputies adopted a draft law on Wednesday whereby entitlement to social assistance ceases when a job is refused. The decision, Agerpres announced, was taken with… Mai mult›
The National Agency for Employment (ANOFM) grants subsidies of RON 900/month to employers who employ graduates of educational institutions, with contracts of indefinite duration, within… Mai mult›
C.P. Tariceanu, before the heads of Senates from EU: The European Commission has encouraged the parallel state, in Romania it is like in the 50's
Calin Popescu Tariceanu (foto) delivered a very tough speech on Friday, in the Senate, addressed to the European Commission, which he accused of encouraging the… Mai mult›
The National Bank of Romania (BNR) sent to banks for consultation a draft amending Regulation 17/2012, which provides for a consistent lowering of the indebtedness… Mai mult›
Senators adopted on Wednesday the draft for amending the Code of Criminal Procedure, by 74 votes for to 28, against. The bill goes to the… Mai mult›
RBL: Workforce crisis is worse than economic crisis - 3.4 million Romanians have left the country in last 10 years
Migration is one of the most serious problems facing Romania at this time, along with the lack of infrastructure. However, the return of Romanians to… Mai mult›
Romania's economy could grow by 5.1% in 2018, according to the World Bank summer forecast. The estimate has been improved by 0.6 percentage points above… Mai mult›
Ministry of Energy: Natural gas from Black Sea will be exported through Onesti - Isaccea - Negru Voda network
The Ministry of Energy issued for Transgaz the construction permit for the consolidation of the transport system between Onesti (Bacau) and Isaccea (Tulcea) and for… Mai mult›