Nine ministries will be granted bigger budgetary credits in 2020 compared to what they received in 2019, whilst seven will get less than what they had for this year. According to the recently published draft of the state budget law, the ministry of external affairs has been granted a budgetary credit of RON 1 trillion, 15% less than in 2019. The ministry of agriculture and rural development gets RON 18.3 trillion, 14.55% less than it had this year.
The decrease is 36.89% in the case of the ministry of economy, energy and business environment, which will have RON 1.2 trillion. The budgetary credit is diminished – as according to the draft – in the case of the ministry of public finances too, which is to get RON 5 trillion. Less money will be going to the ministry of public affairs, development and administration, which will have minus 42.21% compared to this year, or RON 5.5 trillion. The budgetary credits were cut for the ministry of environment and the ministry of public health, too. The former will receive RON 1.2 trillion, minus 60.47% compared to the previous amount; the latter will get RON 11.5 trillion, which means a decrease of 22.82%.
The budgetary credit of the ministry of internal affairs will be increased by 13.16% to RON 20.2 trillion; the ministry of defense will get 16.15% more, which means RON 23,736 trillion; the ministry of culture has been granted RON 943.6 billion, 9.14% more than in 2019; and the ministry of education and research will obtain 2.54% more, an amount of RON 32.8 trillion. The budgetary credit of the ministry of European funds will be topped by 62.01%, or RON 2.1 trillion, and the ministry of justice will get RON 4.9 trillion, an increase of 4.74%. The ministry of labor and social protection will receive RON 41,911 billion, 32.74% more than in 2019; the ministry of transports will be granted RON 11.8 trillion, 3.28% more than this year; and that of youth and sports will receive 0.77% more, which means RON 569.1 billion.
The draft budget of the year 2020 is based on economic growth of 4.1%, a budgetary deficit of 3.59% and a 3.1% medium rate of inflation, as published in the macroeconomic report and projections of the ministry of finances. The ministry foresees an amount of RON 360.1 trillion in revenues, 31.89% of the GDP, and the expenses are estimated at RON 400.7 trillion, 35.48% of the GDP. The budgetary cash deficit is estimated at 3.59% of GDP, and an ESA (European System of Accounts) deficit at 3.58% of the GDP.
Prime Minister Ludovic Orban has announced on Wednesday that his government decided to take responsibility in Parliament of the 2020 draft budget.
“This is a responsible and necessary decision in order to have a state budget by December 31 – a budget based on the economic realities and able to provide every Romanian, every company and local authority the possibility to know what to expect for the next year,” Orban said.
Taking responsibility in Parliament means that the draft will not go through the usual legislative procedure and thus does not need the vote of MPs to be adopted. Nevertheless, if some of the MPs do not agree with the government, they can hand in a motion of no-confidence within three days. In the case that this motion passes, the government falls.
Title image: The national-liberal government led by Ludovic Orban (in the picture) is taking responsibility in Parliament for the draft budget so that it can be adopted by the end of the year.