Fiscal incentives for state-run companies

A number of companies subordinated to the Economy and Trade Ministry and to the Ministry of Transports, Constructions and Tourism will not have to pay their dues to the state budget, social security budget, unemployment fund and other funds next year. This step is included in next year’s Budget law draft, which also provides for 2,600bn ROL subsidies for paying the electrical power bills of a number of companies run by the two ministries. The budget draft stipulates subsidisation for economic actions should be increased from 8,101.9bn ROL in 2003 to 17,149.8bn ROL, which is twice higher in nominal terms and 87% higher in real terms. Spending on economic actions allowed for in the 2004 state budget draft amounts to 92,446.4bn ROL compared to the 73,496bn ROL in 2003, an increase of 25.78% in nominal terms and of about 10% in real terms. As for spending chapters, the industry gets 17,537.9bn ROL compared to the 15,260.5bn ROL in 2003. Nominal increase is 14.9%, but the amount remains the same if calculated in real terms. ZF