The 2016 draft budget build on 2.95pct deficit and 4.1pct economic growth

The 2016 state budget is drafted with a deficit of 2.95 pct, an economic growth of 4.1 pct of the GDP and a nominal gross domestic product of 746.6 billion lei announced Finance Minister Anca Paliu Dragu.

Dragu said the estimation took into account the additional spending of 13 billion lei announced by Parliament and the Government in 2015 for next year. The growth in next year's estimated budget revenues is 1.6 pct, and that the projection of the consolidated general budget was based on the macroeconomic indicators calculated by the National Projection Commission.

"Next year's ESA deficit is estimated at 2.95 pct of the GDP, which corresponds to a cash deficit of 2.8 pct of the GDP and a structural deficit of 2.73 pct of the GDP; these figures are calculated in a macroeconomic framework that assumes a 4.1 pct GDP growth and a nominal GDP of 746. 6 billion lei," Anca Dragu said at the Victoria Palace, after the Government's sitting and reported by Agerpress.

In connection with the main expenditure categories of next year's consolidated budget, Dragu said that investments are expected to rise reaching 5.1 pct of the GDP, compared to an estimated 4.7 pct of the GDP in 2015, social security spending is approximately constant, and employee spending will grow from 7.3 pct to 7.7 pct of the GDP as a result of the multiple wage increases operated recently.

According to the FinMin, healthcare spending will see an increase by 3.1 billion lei with the Ministry of Health and the National Health Insurance Office, a 9.6 pct increase in education spending over 2015, and a significant increase by no less than 23 pct for the research and development sector.

The draft budget will be posted on the website of the Ministry of Finance for public debate and after to be adopted by the Government and referred to Parliament, for the lawmaking body to publish it by December 17, said Dragu.