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Minister of Finance publishes 2021 budget law project for public debate
by Romanian Reporter - Friday, February 12, 2021 11:19 AM
According to the budget law published Thursday evening, the state revenues will be about RON365 billion (32.67% of GDP) in 2021, while the expenses will reach RON445 billion (39.84% of GDP). The budgetary deficit will therefore be around RON80 billion, down by RON20 billion compared to last year.
The estimated deficit represents 7.16% of GDP for 2021, compared to 9.79% for the last year. The percentages are calculated on a cash deficit methodology, which is preferred by the Romanian authorities, as well as the International Monetary Fund.
This method counts the actual payments performed within a timeframe, as opposed to the ESA (European System of Accounts) methodology, used by the European Commission, which includes all cost commitments, even if the actual payments take place in a different fiscal period. When using the ESA methodology, the 2021 budget deficit increases up to 8.23%.
| Deficit | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|
| ESA | -2.94 | -4.36 | -9.10 | -8.23 | -6.36 | -4.68 | -2.90 |
| Cash | -2.82 | -4.58 | -9.79 | -7.16 | -5.84 | -4.37 | -2.89 |
The budget estimations are built on a 4.3% economic growth assumption for 2021, with a nominal GDP of RON1.116 billion and an average inflation rate of 2.4%. The estimated growth rate for 2022-2024 is 4.9%, higher than the estimated average for EU countries (4.2% for Eurozone and 4.1% for all EU countries, as estimated for 2021).
Allocated budget for ministries and comparison to the previous year
- Labour and Social Protection - 53.7 billion (+10.00%)
- Education - 28.5 billion (+2.80%)
- Agriculture - 25.9 billion (+10.00%)
- Internal Affairs - 20.9 billion (+1.75%)
- National Defence - 20 billion (+3.4%)
- Health - 17.4 billion (-11.20%)
- Transportation - 14.1 billion (+9.40%)
- Development, Public Works and Administration - 7.15 billion (-19.19%)
- Economy, Entrepreneurship, and Tourism - 6.58 billion (+186.00%)
- Finance - 5.39 billion (-3.00%)
- Justice - 4.68 billion (+2.50%)
- Investments and European Projects - 2 billion (+11.30%)
- Research and Innovation - 1.92 billion (+24.30%)
- Environment, Waters, and Forests - 1.32 billion (+18.80%)
- Foreign Affairs - 1.06 billion (-3.00%)
- Culture - 894.2 million (+12.80%)
- Energy - 889 million (+15.00%)
- Youth and Sports - 543.1 million (+3.20%)
Photo: Florin Cîţu/ Facebook
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