The International Monetary Fund and the Romanian authorities have already agreed on next year's budget parameters, Jeffey Franks (in picture, right), head of the IMF mission to Bucharest, said Wednesday.  The 2011 budget must be adjusted according to necessities, said Franks when asked by journalists about his view on the parliament's decisions to cut the value added tax level for staple food and to lift the income tax on small pensions.

Romanian lawmakers adopted Tuesday a bill cutting to 5 percent from 24 percent the VAT level for bread, meat, milk, edible oil and sugar. The parliament also adopted an amendment to the Tax Code that exempts small pensions from a 16 percent income tax.

An IMF mission is currently in Bucharest to review Romania's progress under the terms of a EUR13 billion arrangement.

Mediafax