The ruling party will use next year's budget to back up the ample social programme announced by the Social-Democrat Party (PSD), comprising measures needed to win over the voters for next year's elections.
Finance minister Mihai Tanasescu, also vice-president of PSD, yesterday acknowledged these plans, quoting the budget definition from the second chapter of the Public Finances Textbook: "The budget is a political instrument, in the hands of the governing team." The budget will also be used to fund infrastructure projects, which need about ten billion dollars.
Local and parliamentary elections will be held next year, with the president to be elected at the beginning of 2005. PSD has big plans: the party aims to win the majority of votes (more than 50%), which would allow it to rule by itself, without the help of any allies. Until next year's elections, PSD has already announced several social measures, aimed at its traditional voters: heating tickets for the unemployed, pensioners and low-income families, double pensions for farmers, aids (two million ROL per hectare) for the small farmers, heftier child support. Some of these measures have already been applied. The Government has decided to grant 880bn ROL in damages to the insured persons whose lands were affected by this year's weather conditions, to grant a subsidy (4,000 ROL/kilo) for the seeds used during the agricultural campaign for this fall and two million ROL for every hectare of cultivated agricultural land, up to five hectares.
But the bill for these measures has not been disclosed. Although Opposition leaders have estimated the generous social programme initiated by PSD at some 40,000 billion ROL, the Finance minister would not make any estimates. "I will not release any figures," Tanasescu said yesterday. However, he said that all the measures announced by Premier Adrian Nastase during the PSD National Council meeting had the necessary financial support. "These programmes have been carefully analysed before being actually announced. They have been evaluated and we disclosed this strategy only when we realised it had macro-financial support. This is not about more money. This is about another priority, which has been decided by the current government," Tanasescu said.
At the same time, Mihai Tanasescu says there are no changes for this year's macro-economic indicators: 5% growth, 8-9% inflation, 9-10% higher investments and a budget deficit "revolving around 3."
The budget deficit could be a problem for the Government, as it will be tough to talk the IMF into accepting an increase, even though the authorities commit to invest every penny into infrastructure.
mirela.luca@zf.ro ; razvan.voican@zf.ro
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