Talks on the state budget
The Romanian president and prime minister have met to discuss the 2017 budget. The meeting came amidst concerns that the measures adopted by the new government last week may affect the countrys economy.
Corina Cristea, 12.01.2017, 14:09
Romania’s Social Democrat prime minister Sorin Grindeanu and finance minister Viorel Stefan on Wednesday presented president Klaus Iohannis with the draft budget for 2017. The meeting was held at the request of the president, who is worried that the measures announced by the Social Democratic Party during the election campaign, some of which have already been adopted by the new government, may affect the budget balance.
The measures refer to salary rises and exemptions from the payment of contributions and income tax on pensions, which involves a considerable financial effort, so the president wanted to know how the effects of these measures would be managed and whether they would have an impact on the budget. President Iohannis says drafting the budget is not an easy task, but that the government and Parliament must present a sustainable budget.
Klaus Iohannis: “It is very important to have a sustainable budget for 2017, a solid budget that takes into account several important factors, such as making sure the deficit is below 3%, that defence gets 2%, etc. We have been promised that these things would be achieved.”
The promise was made by Sorin Grindeanu, who has given assurances that the figures presented to the president and which form the basis of this year’s budget are provided by the National Forecast Commission. At the same time, measures are being considered to support the current growth rate so that ordinary citizens also feel the benefits of economic development. The talks with the president also focused on the recent statements made by the leader of the Social Democratic Party Liviu Dragnea who said some 2.2 billion euros are missing from the budget managed by the previous cabinet. The president said no parliamentary inquiry is necessary to investigate the case, explaining that the amount in question represents budget revenue that has not been received.
Klaus Iohannis: “For reasons I’m unaware of, the phrase ‘budget hole’ was initially circulated, but this is out of the question. This is simply a matter of money that has not been cashed for reasons that others must explain, not me, but those who have been in government. One thing is certain, namely that nobody walked out with the money and at this point it is important to work very, very hard on the budget for 2017. I have offered support in this regard in the form of expert advice.”
Soon after the accusations launched by Dragnea, the former prime minister Dacian Ciolos said the so-called “hole” does not exist. He said revenues were higher in 2016 than in 2015 and the final deficit was below the figure initially forecast.
