The state budget for 2021 has been under
\nconstant debate these days, its adoption having been postponed against for next
\nweek. The ruling-coalition Government says the budget will observe a 7% deficit
\ntarget, will support economic recovery and will cap unnecessary and excessive
\nspending of public money. During the pandemic, the budget was strained by high
\nhealthcare costs, and building the new budget is difficult. Coalition leaders
\non Monday decided to further cut back on spending. They announced pensions
\nwon’t be going up as planned in September this year, but starting January 1,
\n2022. In turn, employees in the public sector will see their holiday vouchers
\nslashed this year. Certain bonuses may also be cut, such as the so-called COVID
\nbonus, accounting for 30% of the base salary, awarded to employees in the
\nprefect’s offices. Meal allowances awarded to public sector employees could
\nalso be reduced. Child benefits won’t go up this year, and the authorities are
\nplanning to reduce subsidized transport for students. Liberal leader Ludovic
\nOrban tried to explain this package of measures, which many see as an austerity
\none.<\/p>\n
<\/p>\n
<\/p>\n
\nIncreasing the pension point is based on a 100% offset of the decreasing
\npurchasing power as a result of inflation, and increasing the purchasing power
\nby increasing the pension point by 50% of the increase in the average national
\nwage. No holiday vouchers will be issued this year, because last year’s
\nvouchers are valid over the course of 2021 as well. <\/p>\n
<\/p>\n
<\/p>\n
\n
<\/p>\n
This announcement added to the
\ndisgruntlement of the hospitality sector, where companies have been severely
\naffected by pandemic-related measures. Losses in this sector run up to \u20ac7
\nbillion, says Daniel Mischie, the president of the Organization of Employers in
\nthe Hospitality Sector in Romania. <\/p>\n
<\/p>\n
<\/p>\n
\n
<\/p>\n
Don’t tourism units need help too? Don’t
\nthey need compensations as well? We’re asking why a quarter of our venues stay
\nclosed today. First of all, they lack the financial resources. Secondly, they
\nlack predictability. This industry accounts for 7% of Romania’s active
\nworkforce. There are 400 thousand people working in various parts of this
\nsector. We account for 5% of Romania’s GDP. Over the coming three months, the
\nGovernment must come up with a solution to offset all the restrictions taken
\nagainst this industry. We don’t see this happening. There is no greater urgency
\non the Government’s table right now, other than the 400 thousand people waiting
\nfor help. <\/p>\n
<\/p>\n
<\/p>\n
\n
<\/p>\n
In turn, students’ organizations have
\ncalled on the Government not to cut back on its transport subsidies.
\nSocial-Democrat leader Marcel Ciolacu has accused the coalition of implementing
\ninconsistent policies and allocating funds randomly to serve their political
\nclients. (V. Palcu)<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
The state budget for 2021 is not yet ready, although we’re 40 days into the new year.<\/p>\n","protected":false},"author":105,"featured_media":87941,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[36011,35374,39079,35879,30168,32366],"coauthors":[],"class_list":["post-88043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-2021-state-budget","tag-covid-19","tag-holiday-vouchers","tag-hospitality-sector","tag-ludovic-orban","tag-pensions"],"acf":[],"yoast_head":"\n