RRI Live!

Listen to Radio Romania International Live

From budget deficit to social measures

Romania’s budget deficit in the first four months of the year stays around 11.6 billion Euros

Photo: pixabay.com
Photo: pixabay.com

, 28.05.2024, 12:59

The government has no easy task this year, which is an election year in Romania: They have to come up with financial solutions in a country that has for years registered an excessive budget deficit. Rules must be obeyed in order not to attract the attention of Brussels who is closely monitoring the situation and the government’s attempt to find a common denominator between these rules and the good functioning of the country led to the construction of a budget with a deficit of 5% of the GDP this year, lower than last year when it stood at 5.68%.

Data released by the Finance Ministry show that in the first four months of the year, the budget deficit has gone up to 3.24% of the GDP, 2% more than in the same period last year.

The state reported 37 billion Euros in revenues 15% higher on an annual average, including from the VAT, income and profit taxes. Expenses were also on the rise by 29%, mainly due to pay rises, social assistance, goods and services, the amount standing at roughly 48 billion Euros.

According to field ministry, the deficit in April was influenced by the payment in advance of the 1.8 billion Euros in pensions before the mini-holiday on Easter and May 1.

The government’s focus must remain steady all the more so as Romania will have to align to the European directive on the minimum gross wages, which says that the employees in low income brackets will have to receive at least half of the medium salary.

Raising the minimum wages in Romania to 740 Euros from the initial sum of 660 Euros is high on the government agenda this week.

The measure was decided by the ruling PSD-PNL coalition, which has also proposed a 20% cap on trade markup for products made in Romania. The government is expected to endorse the measure in the following period of time. Here is Romania’s Prime Minister Marcel Ciolacu.

Marcel Ciolacu: “That concept has already been implemented in France with the same purpose, namely to protect the local producers. In Romania we do not have a majority retail system with Romanian capital, like they have in Poland, for instance. So, you have to find solutions to protect the local producers because the retailer can impose some trade markups.”

The PSD and PNL have also tackled ways of curbing budget expenses by limiting them to bare necessities until the first budget adjustment this year.

(bill)

Luminița Odobescu and Volodymyr Zelenskyy (Photo: mae.ro)
Today in the News Monday, 17 June 2024

Summit for Ukraine

    Romania has supported the Ukrainian president Volodymyr Zelenskyy’s peace plan from the very beginning, and Russia’s “so-called peace...

Summit for Ukraine
Photo: pixabay.com
Today in the News Monday, 17 June 2024

Romania and the European minimum wage

Romanians are paid one of the lowest gross minimum wages per economy in the entire European Union. Eurostat data show that they receive the second...

Romania and the European minimum wage
Photo: eyeonicimages / pixabay.com
Today in the News Friday, 14 June 2024

Romania in the grip of severe weather

  Extreme weather has been reported in the past few days in Romania, with code red, orange and yellow alerts issued in various parts of the...

Romania in the grip of severe weather
Photo: pixabay.com
Today in the News Friday, 14 June 2024

Romania at EURO 2024

The European Football Championship kicks off in Germany. Until July 14, Europe’s top teams will be competing for the European title. EURO 2024...

Romania at EURO 2024
Today in the News Thursday, 13 June 2024

Post-election political strategies

  In Romania, the ruling alliance, made up of the Social Democratic Party (PSD) and the National Liberal party (PNL), obtained almost half of...

Post-election political strategies
Today in the News Thursday, 13 June 2024

The inflation rate is going down

The annual inflation rate went down in Romania to 5.12% in May from 5.9% in April, says the National Institute for Statistics. This is the lowest...

The inflation rate is going down
Today in the News Wednesday, 12 June 2024

Europe – focus on Ukraine

Russia is and will remain the most significant and direct threat to NATO security, and allies will work on a strategy to challenge, restrict and...

Europe – focus on Ukraine
Today in the News Tuesday, 11 June 2024

The post-election picture

The Romanian Social Democrats have reasons to be happy after Sunday’s local and European elections because the results allow them to negotiate from...

The post-election picture

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company