Ooni Koda
  1. Home
  2. /
  3. Newsfeed
  4. /
  5. Government has approved budget rectification

Government has approved budget rectification

December 23, 2021

The government adopted on Friday this year's second budget rectification, maintaining the deficit target of 7.13 pct of GDP, announced the Minister of Finance, Adrian Caciu."The rectification of the state budget has been adopted, we maintained the deficit target of 7.13 pct of GDP. We provided the necessary resources for this year, until December 31, and we managed to find a solution to unblock the critical situation at CEC Bank," said the minister.He recalled that CEC Bank has been looking for the solution for two years so that, after the share capital increase in 2019, it could comply with the rule requested by the European Commission to be able to have the necessary exposure and guarantees to enter the lending market."As a result, we have established that we will grant a loan of 1.4 billion lei to CEC Bank for several purposes. Firstly, the Romanian state will immediately receive 900 million lei in dividends. Secondly, this banking company and the other banks will support us in implementing the government program because it contains not only money from the state budget, but also European funds and we need co-financing, so that the beneficiaries of European funds have a place from where to get loans that are targeted at the implementation of the public policy programs that the Government will adopt in the next period. As far as I am concerned, this was a key moment. From this moment on, from the point of view of CEC Bank, we no longer have a risk on the banking system," the government official maintained.According to Caciu, having to reallocate money for pensions and salaries from other budgets at the end of the year has been a structural mistake, one that will not happen again the following year."Today's rectification shows us some structural shortcomings in the way the budget projections are made in Romania, because we end up in the last month of the year having to allocate additional amounts for pensions and salaries, but the saddest thing is that we have to take money from European-funded projects, from investments, not because you have to take money from somewhere, but because those investments only existed on paper in a budget. This is a lesson I am quickly learning myself, and so is the Government and which we must not repeat in 2022," the minister gave assurances.According to a press release of the Ministry of Finance, the deficit of the general consolidated budget, in absolute amount, calculated according to the national methodology (cash), increases to 84.905 billion lei, while standing at 7.13 pct of GDP.  

The text of this article has been partially taken from the publication:
Read in full - click here
[Feature] 15 years on: How are Bulgaria and Romania doing in the EU?

The latest European Commission health report puts the pair of south-eastern EU accession states last in terms of the overall lifespan of their citizens. Romanians and Bulgarian now die even younger than before.  

Good work, Volodya! Putin resurrects NATO

Saber-rattling over Ukraine puts US-led alliance center stage, downgrading EU.  

President Iohannis: Unification of January 24, 1859 demonstrates importance of project to catalyze energies of Romanian people

President Klaus Iohannis stated on Monday that the Unification of January 24, 1859, demonstrates the importance of the existence of a project to catalyze the energies of the Romanian people."The Unification of January 24, 1859 demonstrates the importance of the existence of a project that catalyzes the energies of our people. In trying times, Romanians […]

Minister Bogdan Aurescu proposed the organisation of a reunion of EU foreign affairs ministers in Kiev

The minister of foreign affairs, Bogdan Aurescu proposed the organisation in Kiev of a reunion of the EU ministers of foreign affairs, which could demonstrate the solidity of the European Union in Ukraine, in the context where Russian military forces are gathered at the Russian-Ukrainian border and the risks of this situation at the address […]

Survey: 42% of the Romanians consider that Russia will invade Ukraine, 65% consider that invasion is illegitimate

The data of an Avangarde survey which measures the public perception on the situation in Ukraine, at the command of G4Media, shows that 42% of the interviewees think that Russia will invade Ukraine, only 29% considering that the invasion will not take place. 64% of the interviewees see Russia as a threat for Romania, while […]

Energy Minister informs EC of Romanian authorities' plans to step up support to final consumers

Energy Minister Virgil Popescu, attending on Saturday an informal meeting of the EU Energy and Environment Ministers in Amiens - France, informed the European Commission about the Romanian authorities' plans to adopt additional short-term measures to step up energy support to final consumers."We had a new round of ministerial debates on the EU energy price […]