New measures aimed at cutting public expenses

The Romanian government has endorsed fresh measures to curb public expenses

Adaugă ca sursă preferată în Google

Bogdan Matei, 25.10.2023, 14:30

The PSD-PNL coalition government in Bucharest has announced it will continue to promote discipline in spending public money, with a declared purpose of curbing the budget deficit. In this respect, the Executive has come up with a fresh emergency ordinance aimed at diminishing expenses at the end of the year.

The Finance Ministry put the project up for public debates on Tuesday. Under the new provisions, public institutions and city halls are facing a new series of restrictions related to the organization of festivals and competitions. Credit accountants are no longer allowed to sign legal contracts for the purchase of office furniture, or other goods as well as maintenance and repair services.

Also, under the new law, the implementation of the pay rises legally obtained by state employees has been postponed for the year 2024. Romanias Social-Democratic Prime Minister, Marcel Ciolacu says that no one has to worry about the new law though as there are enough budget funds for salaries and the other expenses the government pledged to cover. Pensions will be indexed as of January 1st according to the inflation rate of 13.5%.

„We have enough money for pensions, wages, to ensure the state functioning and other investment” – the head of the government has said. Mass-media points to the fact that the new government measures are coming shortly after the European Statistical Office, Eurostat, has revealed that Romania, with 6.3%, and Hungary with 6.6% are the countries with the highest government deficit out of all the 27 EU members.

According to the same sources, Romania has registered a 5.9% GDP deficit in the first three months of 2023 and of 6.3% in the fourth quarter of 2022.

In the meantime, the opposition USR and the Liberal splinter, Force of the Right have tabled a simple motion against the Liberal Minister of Finance, Marcel Boloş, whom they blame for skyrocketing expenses during his mandate.

According to the motion initiators, in order to gather money for the government, Boloş and Ciolacu have decided to cut the tax payers incomes with another round of tax raises, which have seriously affected the small enterprises. The two would have opted for a short-term financial gain at the expense of long-term stability and prosperity.

From the ruling coalition, PSD MP, Gabriel Zetea has defended his team underlying the government must resort to measures aimed at curbing public spending. Public institutions must prove their readiness to save public money at the end of the year.

Next year, Zetea pledges, fiscal adjustment measures are to come into effect for private entrepreneurs. Political analysts are also expecting a happier 2024 for the public and private sector alike as the entire political class will be focusing on winning the electorate and muster votes in the upcoming elections, for the European Parliament, as well as in the local, legislative and presidential elections.

(bill)