Government approves 2009 state budget

The Government approved on Thursday the state and social insurance budget for 2009, Prime Minister Emil Boc announced. The budget is built around the following indicators: 2.5% economic growth, 2% budget deficit, 5% inflation rate and a 144.7 billion Euros GDP. Finance Minister Gheorghe Pogea announced that the social insurance contribution would increase 3.3%, without mentioning if the measures refer only to employers or to employees as well.

Then anti-crisis plan, in brief:

– 20% of the budget will go to massive investments in infrastructure;

– The Government’s debt is a priority. Without paying the remaining debt, the economy is blocked;

– The re-invested profit will not be subject to taxes, starting in 2010. The impact of this decision will be 3.44 BN RON, representing 0.59 of the GDP;

– Compensating VAT returns with VAT to be paid will be possible;

– CEC and Exim Bank will be capitalized;

– There will be a fund to help small and medium enterprises;

– The „Wrecks” program (buying back old cars in exchange for price decrease when buying a new car) will continue and will grow;

– The general budget will include the income of state agencies and institutions;

– The minimum pension will be 350 RON, growing in two steps – on May 1 and October 1;

– The retired persons will have the medication compensated by 90% for those with pensions under 600 RON, necessary funds will be gathered from the tax on vice;

– For the temporary unemployment under 3 months, the social contributions are not paid.

Other data:

– Budgetary personnel will have wages increased by 5%;

– The budget for Education will be 6% of the GDP;

– The budget deficit for 2008 may be 5.2%, after the last calculation;

– Excises for alcohol and tobacco will increase in 2009 up to the level that should have been reached in 2012.