The state's investment spending fell by over 17% in the firsttwo months of the year compared with the similar period of 2010,amounting to just 1.3 billion lei, while overall budget revenuesclimbed 8.3% to 27.5 billion lei.
The state budget continued to see higher revenues collected inFebruary thanks to the significant increase in VAT collection, butthe authorities are putting off investment spending, which isexpected to pull the economy out of recession.
The Government boasted it had received the IMF's consent to spendon investments back in the beginning of the year, but figures donot point to an encouraging progress of state investments.
Analysts have said on countless occasions that public investmentsshould not be cut, especially during this time when the privatesector is still ailing and the economy has yet to fully recover.The right ways to meet the deficit target primarily entail cuttingnon-essential spending, not reducing amounts allocated toinvestments.
For the first quarter of the year, the maximum deficit target wasincreased to 8 billion lei precisely in order to allocate higheramounts to investments. Two months into the year, the deficitreached 2.3 billion lei (0.43% of GDP).
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