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Thus, according to Agerpres, the RCC discusses on Wednesday the notification of the Government on the law to approve the rectification of the state budget and the state budget of social security for 2020. This situation was reached after the Executive notified the Constitutional Court to mid october. to exercise the preliminary control of constitutionality regarding the Law for the approval of GEO 135/2020 – the rectification of the state budget for 2020 and the Law for the approval of GEO 136/2020 – the rectification of the state social security budget for 2020 .
What this means? In practice, in the notification addressed to RCC, the Romanian Government underlined once again the arguments according to which the Parliament ignored the predictability requirements of the law and the prospects for the evolution of the consolidated budgetary situation and the general economy, with the consequence of affecting the principle of legal certainty.
What arguments does the Orban government have?
“Furthermore, the repeal of some articles of the rectification ordinance by which the government increased the pension point as of September 1 does not automatically lead to the application of the initial law until transitional provisions have been issued,” officials said. of the Romanian government. Likewise, specialists from Ludovic Orban’s apparatus show that the parliamentarians “did not identify clear sources of financing” for the proposed increases, necessary to cover the expenses pursued and reflect the principle of budget balance.
In his opinion, in this context, another increase in pensions with respect to the last one approved would violate the constitutional provisions: “With the entry into force of GEO 135/2020, the new value of the pension point was applied, 1,442 lei respectively. effective September 1, 2020, in the maximum amount allowed by the state budget. “
An increase of 333 lei of the pension point in Romania (no – 1,775 lei) as amended by the legislator and the increase in teachers’ salaries would imply “a need for financing from public funds of 11.2 billion lei in 2020, respectively 1 0.06% of GDP and 34.3 billion lei in 2021 (which represents 3.05% of GDP) ”. As attractive as these desideratives are, they contradict the execution of the consolidated general budget in the first months of 2020, which registered a deficit of 45.17 billion lei, respectively 4.17% of GDP.
The pandemic also affected the pension
In the current crisis caused by the coronavirus pandemic, the pressure on the state budget is enormous due to massive increases in non-permanent spending. Thus, the risk of having a huge budget deficit in 2021 is high, and the Executive considers that Parliament should contribute to correcting the budget deficit, not in any way act against this objective. Above all, this is what millions of retirees must understand.
The Orban government states that “the Legislature therefore does not respect the European commitments that Romania is obliged to fulfill.” On the other hand, the Executive highlights that the rectification of the state budget for 2020 was built on the basis of “analysis and impact studies”, so as not to affect in any way the balance between all areas that needed financing. This would mean, in theory at least, that the economic impact of the health crisis should be reduced to the “lowest possible level”.
“The distortion of the budget construction, by introducing expenses without a real basis in the income level, aims at economic degradation, with a negative impact on the standard of living of all citizens, including the alleged beneficiaries of these expenses. At the same time, the management of the current economic context requires a realistic report on the international economic situation caused by the pandemic and the utmost caution in maintaining budget balances for the benefit of all citizens ”, shows the Government.
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