Decisive day for Romania’s budget. Parliament votes on pension and salary increases and additional funds for mayors



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The parliamentarians vote on Tuesday, at 1:00 p.m., in full meeting, the budget rectification project, modified by PSD in the specialized committees last week. Under the changes, PSD wants to increase pensions by 40%, increase teacher salaries this year and allocate funds to local authorities.

The PNL has already announced that if the amendments to the rectification project go through the plenary session of Parliament, the liberals will challenge the law in the RCC. NLP states that Through the Social Democrats ‘amendments, including a 40% increase in pensions and an increase in teachers’ salaries, the PSD “set Romania on fire”, committing expenses of 65 billion lei.

Also read Ciolacu: We will vote in Parliament to increase pensions according to the law

What are PSD amendments, adopted in committees?

Parliamentarians from Parliament’s joint finance and budget committees voted to increase pensions by 40%.

Likewise, the amendment that postpones the salary increase for teachers until 2021 was repealed. And in the case of this amendment, if the law passes in plenary session, the law that provides for the salary increase of teachers as of September 1, 2020.

Another amendment to the state budget law is the allocation of an amount of 400 million lei for the Start Up Nation program.

Last but not least, the commissions increased the amounts deducted from the value added tax by 2020 by 1.5 billion lei to finance local budget expenditures. Thus, the amount provided by the government to 2.1 billion was increased to 3.6 billion lei.

Another adopted amendment establishes that “the public debt ceiling, according to the EU methodology, by the end of 2020, is 40% of GDP”.

The deputies and senators also supplemented the budget of the Secretary of State for Cults with 20 million lei for the continuation of the works in the Cathedral of the Salvation of the Nation, whose source of financing is the Government Reserve Fund.

Through another adopted amendment, the committees allocated an additional 5.635 million lei, in the budget of the Chamber of Deputies, to the purchase of the necessary equipment for the provision of the parliamentary offices in the territory, in the change of legislature.

The parliamentarians also allocated an additional amount of 67 million lei for the Ministry of Agriculture, destined to finance the Program for the realization of the national anti-hail system and for the increase of rainfall.

All adopted amendments were proposed by PSD.

Prime Minister Orban says there is no money and asks MPs not to vote for the PSD amendments

Prime Minister Ludovic Orban said on Monday that the budget “can no longer afford any increase in spending at this time” and called on all political forces not to support the report of the specialized committees on budget rectification in Parliament.

“The budget can no longer afford any increase in spending at the moment. After the black day in Parliament in which the PSD members of the Budget-Finance Committee approved some amendments to the rectification ordinance, Romania is currently in extremely great danger. I call on all political forces not to support in Parliament the report approved by the Committee on Budget-Finance because this will have detrimental consequences for the Romanian economy, including Romania’s ability to attract investment, European funds, to be considered a solid partner. Or I think it is enough and we must end this irresponsible way of doing politics “, said Ludovic Orban.

He noted that the Government is considering notifying the RCC in case of changes in the budget rectification.

“Any law that does not provide the source of financing, according to previous RCC decisions, is unconstitutional and we, as a government, have the obligation to challenge in the RCC all laws that we consider unconstitutional,” Orban said.

The prime minister indicated that the amendments approved to the budget rectification ordinance cause an increase in public spending by 1.7% of GDP by 2020 and by 4.8% of GDP by 2021.

Also read the PSD Project through which teachers receive a COVID bonus of 2,000 lei, adopted by the Senate

Editing: Robert Kiss

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