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How the Fiscal Council sees the draft for budgetary rectification

The draft for budgetary rectification proposed by the ministry of finances breaks the law of fiscal responsibility as the supplementary sums to expenditure are allocated for chapters which exceed the allowed area, according to the Fiscal Council.

Through the draft for budgetary rectification, published on the site of the ministry of finances, the expenditure of the general consolidated budget were increased by 2.98 billion lei, overcoming the ceiling of 194.4 billion approved by the parliament for 2011 through the law 275/2010 regarding the approval of ceiling for certain indicators, specified in the fiscal-budgetary strategy, Mediafax informs.

« Although the emergency ordnance draft for the rectifictation of the state budget for 2011 includes the exception to provisions of art.16 of the law of fiscal-budgetary responsibility, the Fiscal Council considers as regretable the practice to avoid through a normative document the rules made through law 69/2010 for the promotion of discipline in budgetary execution » the Council says.

The draft for rectification does not meet the provision in the law of fiscal responsibility according to which total expenditure of the general consolidated budget, excluding financial assistance on the part of the European Union and other donors, can be supplemented with the occasion of budgetary rectification only for the payment of the service of public duty and for the payment of Romania's contribution to the EU budget.

At the rectification there was proposed the supplimentary total expenditure of 2.98 billion lei for such chapters as subsidies – 735.5 million lei, « social assistance « - 236.6 million lei, « other transfers » - 442.3 million lei, « other expenditure » - 12 million lei).

At the same time, expenditure with goods and services ( + 433.2 million lei, out of which 300 million to the National Fund of social health insurance)were supplemented as well as capital expenditure ( +320.8 million lei), reserve fund (+228 million lei), subsidies expenditure ( + 220.8 million lei), social assistance ( + 1163 million lei) and bigger sums were given to « other transfers » ( + 116.7 million lei).

The Council members state that, although the majority of expenditure can be partially justified by the necessity of debts payment, the temporary suspension of provisions of the law of fiscal-budgetary responsibility creates a situation which could in the future lead to other avoidance of the principles of fiscal-budgetary policy, responsible and predictible.

The draft of budgetary rectification includes the increase with the same sum of income and expenditure of the general consolidated budget, keeping the target of budgetary deficit assumed for this year at 4.4% out of GDP.

Sursa: http://www.actmedia.eu

Tags: budgetary laquo other million budget rectification council draft fiscal expenditure