Seven ministries favoured in budget correction

State budget revenues collected from profit tax are estimated to be 566bn lei lower than forecast early in the year, due to the lower amounts transferred by the National Bank of Romania and by the commercial banks.

On the other hand, the Cabinet estimates to collect 2,800bn lei more from profit tax in the economic sector. The Government last week decided to rectify the state budget and the general consolidated budget and granted 3,600bn lei in additional budgetary allocations to seven ministries, said PM Adrian Nastase.

The budgetary correction was a positive one, based on additional income tax receipts and on the amounts left from the payment of the domestic public debt interests.

The revised state budget revenue structure includes 4,450bn lei in additional receipts from income tax. NBR is estimated to deposit a profit tax 2000bn lei lower than previously forecast. The explanatory note of the ordinance correcting the budget specifies this is due to the fact that NBR had not made any transfers for this tax by July 31.

“The situation was caused by the H1 losses and by the entire 2001 being estimated to end in loss, as well, due to the monetary policy, whose main goal is to maintain the inflationary rate,” the explanatory note reads. As for commercial banks, the amount that has to be deposited as profit tax is anticipated to be 1,377bn lei lower, due to H1 receipts.

“This was caused by lower banking interests, caps set on commissions for banking operations, decrease in foreign currency transactions as a result of the euro prevailing and the cease in certain banks’ operations (Banca Internationala a Religiilor- International Religions Bank, BIR and Banca Turco-Romana- Romanian Turkish Bank, BTR).