Romania’s Finance Minister Anca Dragu presented on December 3 the next year’s draft budget, which includes a 1.6% increase in the nominal revenues.

The budget is based on a deficit of 2.95% and an economic growth of 4.1%.

The nominal GDP taken into account for 2016, which is important in calculating the deficit, amounts to RON 746.6 billion (EUR 167.4 billion). The revenues included in the draft project total over RON 231 billion (EUR 51.8 billion), whereas the total expenses reach RON 252 billion (EUR 56.5 billion).

The state’s personnel costs amount to EUR 12.7 billion, whereas the social assistance costs reach EUR 17.7 billion, as the budget draft also includes a 5% increase in pensions, starting January.

The draft budget will be available for public debate in the following days, said Dragu. The Government will adopt it and send it to the Parliament next week, so that the MPs can approve it by December 17.

editor@romania-insider.com