The Development Ministry gets 0.64 percent of this year's GDP above last year's level

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The Ministry of Regional Development will receive, according to the new budget draft, some 3.74 billion lei, the equivalent of 0.64 percent of the gross domestic product (GDP), 20 percent above what it received last year, declared the Minister Vasile Blaga.

The amount represents 1.81 percent of the whole state budget. Besides, the ministry will get some 950 million lei more, from loan commitment.

The money will be used for projects like thermic rehabilitation, building new homes, but also for co-financing pre-accession and post-accession projects and PHARE programs.

Blaga mentioned that the ministry it runs has accumulated debts of over 137 million lei, ten times bigger than at the beginning of 2008, because the institution's budget was reduced at the last budget revision of the outgoing Cabinet by 160 million lei.

In an attempt to save money, the ministry has undergone a staff restructuring, the number of departments being reduced by 14 and the number of management positions by 17. According to Blaga, the institution can renounce at 14 percent of its employees by the end of March, without affecting its activity. The ministry and the departments it engulfs total 1,404 employees.

Last week the government decided to reduce staff by 20 percent in the central administration to cut costs and spare money for investments.

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