Boc: Bugdet revenues up 8% in November

The revenues of the state budget totalled 10.7 billion RON (about 2.5 billion euros) on November 27, up 8% compared with the level registered a year ago, interim Prime Minister Emil Boc said on TV.

"I am coming from the Government and wrote it down in a hurry: state budget revenues had reached 10.7 billion RON until November 27, which means 108% compared with November 2008, when they stood at 9.9 billion RON. Little by little we are halting economic decline and preparing for the rebound of 2010," Boc said.

In the corresponding period of 2008, the state budget had already seen a sharp decline in VAT-related revenues as a first sign of the crisis, which showed in the fast rise in budget deficit from 1.5% in GDP for the first ten months to 2.9% in November. In the first half of November 2008 alone, the state budget revenues fell by 20% compared with the previous year, taking the Finance Ministry by surprise.

Boc says the increase in revenues to the state budget was partly triggered because of the transfer of about 1 billion euros from the disbanded government agencies.

He believes the economy has reached bottom and "all the data show 2010 will be a plus year as far as the economy is concerned."

On the other hand, multiannual budgets, an old request of the private sector are to be finally implemented through the Fiscal responsibility law, sent for approval to Parliament last week. This law is one of the requirements of the International Monetary Fund that Romania has to meet.

"It was undoubtedly a necessary step, in order to achieve a tight budgetary discipline and predictability for business people. We were shocked, however. There are also some politicians who go as far as to say that multiannual budgets are unconstitutional, much to the bewilderment of business people. I believe they should publicly explain why they are unconstitutional," says Florin Pogonaru, chairman of the Association of Business People in Romania (AOAR).

The fiscal responsibility law cancels 'electoral giveaways' that is wage raises during the six months up to elections. Moreover, budget spending will no longer be as easy to approve, according to interim Prime Minister Emil Boc.