Budget is ready for approval. IMF arrives in Bucharest on Wednesday

The draft budget for next year has been finalised by the Finance Ministry, but it will only be approved by the Government after analysis by IMF experts, who will be in Bucharest for a new review in mid this week.
“We are waiting for the IMF delegation, which will be in Bucharest on Wednesday. The draft budget will then be approved by the Government,” said Gheorghe Gherghina, secretary of state within the Finance Ministry in charge of the budget.
The budget is again dragging on, with the legal deadline for sending the budget to Parliament, October 15th, having already passed.
The 2011 taxation system is not very clear, as there are talks, including within the ruling party, over cutting the flat rate to 12% or even 10%.
President Traian Băsescu says, however, that cutting the flat rate is not a solution, and declares himself in favour of cutting social contributions, saying the VAT will not rise.
According to the draft budget, social contributions will be kept at their current level, with the Government counting on higher state-collected revenues from VAT, excises, income and profit tax.
The 2011 budget provides for a deficit of 4.4% of GDP, the level included in the fiscal-budgetary strategy for 2011-2013.