Transports, healthcare, and agriculture will get higher budget allotments in the 2017 budget, Prime Minister Sorin Grindeanu said yesterday after discussions with the Social Democratic Party’s leaders.

The Transport Ministry should get some RON 13.76 billion (EUR 3.08 billion), around 60% more than the estimated expenses for 2016, according to the first budget draft the Finance Ministry presented on Monday. The Transport Ministry will thus have more money for investments in road and railway infrastructure.

The Agriculture Ministry will get RON 17.3 billion (EUR 3.88 billion), up 83% compared to last year. The higher expenses should be financed through a higher absorption of EU funds. The Health Ministry will get RON 7.74 billion (EUR 1.73 billion) from the state budget, up 6% year-on-year, according to the budget draft.

The Ministry for Business and SMEs will also get significantly more funds than last year, when it was not even a stand-alone ministry. The Ministry’s budget is some EUR 174 million. The Culture Ministry will also get a 50% increase in the expense budget, to RON 766 million (EUR 172 million).

Meanwhile, the Government will reduce the funds allotted to some ministries, including the Education Ministry and the Regional Development Ministry.

PSD leader Liviu Dragnea and Prime Minister Sorin Grindeanu were not very happy with the first budget draft the Finance Ministry presented on Monday, according to political sources. Rumours emerged that PSD may change finance minister Viorel Stefan. However, Liviu Dragnea said yesterday that Stefan would keep his position but added that the finance minister was softer in his first talks to the ministries and other state-funded institutions.

The Grindeanu cabinet will also cut funds for the Presidency, which will have a 13% lower budget than last year, and the Romanian Intelligence Service (SRI), which will get 15% fewer funds, according to the PM’s recent statements.

The PSD Government has been in conflict with both President Klaus Iohannis and SRI after the recent protests against the cabinet’s proposed changes to the criminal law. PSD hinted that SRI may have played a role in organizing the protests.

editor@romania-insider.com