The Romanian Finance Ministry has made public the draft of the first budget adjustment this year.
The first draft budget adjustment this year has just been made public in Romania. The Finance Ministry will be granted additional funds, of which an important part is Romania’s contribution to the EU budget. The Environment Ministry, the Labor Ministry, the Romanian Intelligence Service and the Regional Development Ministry will also receive more money from the state budget. On the other hand, the Education Ministry has its budget slashed.
The amounts for personnel expenditure have been decreased considerably, but the Finance Ministry gives assurances that wages are secured until the end of the year. The Finance Ministry also says that the GDP went up to around 219 billion euros from the initially estimated 210 billion euros. Also, the Ministry points out that the payment of pensions and salaries is not at risk. Under this budget adjustment, the amount for the restitution of the special tax and of the pollution tax for cars is also secured.
From the opposition, the Liberals are asking the Government to withdraw this draft, which they see as false, and come up with a new one, based on real data and able to provide the funds needed to ensure public order and safety, for education, health and transport. The Liberals say the measures to be taken by the Government will only increase the chaos in the public finance sector. The leader of the Liberal senators, Florin Catu, says figures in the draft budget adjustment show there are big holes in the budget and an increase in taxes will follow in order to fill them. The Save Romania Union also calls for the draft to be withdrawn. Parliament member Claudiu Nasui says that through this budget adjustment, the Government only increases current taxes and introduces new ones. He points out that the Government has given up the taxation of special pensions.
The Finance Minister, Eugen Teodorovici, says that the mechanism for the taxation of special pensions is still work in progress and that it is to be decided whether to be passed through emergency decree or as a draft law in Parliament. Moreover, Teodorovici says, the budget adjustment does not involve slashing funds from ministries such as the transport, health and education, and that the ministers must spend the allotted funds. In its turn, the Alliance of Liberals and Democrats (ALDE), part of the ruling coalition alongside the Social Democratic Party (PSD), says the proposed budget adjustment is only a draft and that talks about it are still under way in the ruling coalition.
(Translated by Elena Enache)