Romania’s 2016 Budget
The bills on the state budget and social security budget for 2016 were passed by the Romanian Government and sent to Parliament for debate and approval.
România Internațional, 10.12.2015, 14:12
On Wednesday, the Romanian Government passed the bills on the state budget and social security budget for 2016. The bills were submitted to Parliament for debate and endorsement under an emergency procedure. According to Prime Minister Dacian Ciolos, the budget was built within certain constraints imposed by the legislation adopted by Parliament, which triggered an increase in expenditure. He has called on Parliament to take the matter seriously and to be reasonable when discussing the budget, stressing that those who wish to bring amendments should do that by also indicating the source of financing.
Health, education, defense and investment are priorities in 2016, and therefore will get the biggest shares of the budget next year, while the Ministries of Labor and Transport will get less. The budget was built on the basis of a deficit of maximum 3% of the GDP, as established at EU level, and an economic growth rate estimated at 4.1%. Revenues to the budget will be by 800 million Euros higher next year while expenditures will grow by 2.9 billion Euros, to also cover the fiscal relaxation measures already approved by Parliament.
The budget also provides for funds to increase the pension point by 5% and also for all the salary increases already approved this year, but not for additional ones. The minimum salary will not grow either, at least for the time being, until an impact study is conducted. This provision and the fact that the local communities will not get the requested amounts either, is a matter of discontent for the Social Democrats, who, nevertheless, have stated they will support the budget bill.
Leader of the Social Democratic Party, Liviu Dragnea: “Theoretically speaking, we have no reason to vote against, but we are trying to find solutions for this budget, once turned into law, to be better than the bill proposed by the Government. This is Parliament’s role. It is true that the amounts earmarked to balance the local budgets will be lower than the wishes and needs of the local communities and we will see whether we are able to find, in Parliament, solutions to grow these amounts.”
In turn, the co-president of the National Liberal Party, Alina Gorghiu, said: “The conditions that the National Liberal Party laid down have been met by the Ciolos Government. We are talking about investments, which have grown from 33 to 37 billion lei. Public investments are those that generate added value to the economy and create jobs. We also have more money for education, health and also for the army.”
Debates on the 2016 draft budget start on Friday, in Parliament’s expert committees, and the final voting will be held in Parliament’s plenary sitting next Wednesday.
(Translated by Mihaela Ignatescu / Edited by Elena Enache)
