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The Cîţu government meets in a meeting on Thursday, at 4:00 pm, and the Executive is expected to adopt the “austerity ordinance”. It foresees several fiscal-budgetary changes.
Live statements:
-CSM gave a negative opinion even now, but not because it does not want the dissolution of the Section. The GEO that we needed to be able to approve the Budget Law was adopted. It will be published in the Official Gazette. You know that the things that are part of this ordinance have to do with eliminating the bonus.
Questions:
-Tomorrow we will have the budget. Can we expect a change?
Cîțu: It does not compare with the deficit option. There may be changes inside. We are not talking about more budget credits. A larger amount can be assigned to the Ministry of Development. But the budget deficit remains with the same parameters. It is a credible budget. Politics is still a problem, political decisions are a problem in Romania.
-Some recommendations have been made on the introduction of taxes.
Cîțu: These recommendations are always there. They were also last year. Last year, contrary to those who thought we would not be successful, we obtained better results than expected and without going to taxes. We can develop Romania through digital transformation, it is not necessary to introduce taxes in the next period. The Fiscal Council said it expects an increase of 4-5%.
-CSM is not satisfied with the statements made by Turcan about the increases. Can increases in the budget system be cut?
The salary law was adopted in the Romanian Parliament. There are 110 billion lei in personnel expenses. Almost a third is represented by bonuses. These expenses have doubled. I ask the Romanians if they felt this. So we can talk about bonuses.
Several amendments are being prepared …
-We have allocated resources in this budget at a historical level. It focuses on investments. The execution will be very good.
What guarantees that pensions will increase?
I do not bring the discussion with pensions in the public space. Pensions will rise … it is a guarantee that they will rise with inflation … we will see next year how much they will rise, it depends on everyone.
1. No holiday vouchers for budget makers (savings of 0.15% of GDP)
“As of the date of entry into force of this emergency ordinance, in 2021, public authorities and institutions, as defined in art. 2 par. (1) point 30 of Law no. 500/2002 on public finances, with subsequent modifications and completions, and art. 2 par. (1) point 39 of Law no. 273/2006 on local public finances, modified and supplemented later, regardless of the financing and subordination system, including activities financed entirely with their own income, constituted within the scope of public institutions, as well as autonomous public services of national interest, with legal personality, regulated by Law no. 41/1994 on the organization and operation of the Romanian Broadcasting Company and the Romanian Television Company, as later amended and supplemented, does not grant holiday vouchers “
2. The increase in pensions is postponed to 2023 (savings of 0.8% of GDP)
Modification of Law No. 127/2019 in the sense of extending the date of entry into force of this law on September 1, 2023. Thus, in 2021 the value of the pension point will remain at the level of 1,442 lei, increased by 14% by the Government Emergency Ordinance No. 135/2020 regarding the rectification of the state budget for 2020, the modification of some normative acts and the establishment of some budgetary measures, and from 2022 the value of the pension point will increase with the average annual inflation rate, to which it adds up to a maximum of 50% of the real increase in the average gross income obtained, being the real amount of the increase and the date of grant established by the law of the state social security budget.
Also read: Raluca Turcan: We have almost 5 million Romanians with an average pension of 1,500 lei. 9,500 beneficiaries of special pensions have an average of 9,600 lei
3. Elimination of the increase of COVID in the Prefectures (saving of 23.8 million lei)
Repeal of art. 5 of the Government Emergency Ordinance No. 131/2020 on the regulation of certain measures, which established a 30% increase in the base salary for the personnel of the prefect’s institutions involved in activities to prevent and combat the effects of the COVID-19 pandemic, except for the prefect and the sub-prefect. This measure generated a discriminatory situation against the other categories of personnel of public institutions involved in activities to prevent and combat the effects of the COVID-19 pandemic and generated discontent among them.
4. Free transportation for students is reduced to 50%.
It is also proposed to modify art. 205 par. (2) of 84 of the National Education Law no. 1/2011, with subsequent modifications and completions, in the sense of establishing the right of students enrolled in the full-time education modality, in accredited higher education institutions, up to 26 years of age, to benefit, during the year canedarístico, with a rate reduced by 50% in local public transport, by metro, as well as for internal transport of cars, internal rail transport for all categories of trains, class II and internal naval transport, and the repeal of the provisions of art. . 205 par. (2 ^ 1) which regulated that students should benefit, throughout the calendar year, from free internal rail transport for all categories of trains, class II.
5. Benefits for CFR employees are deferred
It is proposed to extend until April 1, 2022 the date of entry into force of Law no. 195/2020 on the situation of railway personnel. This law approves for railway personnel, both within public institutions and within economic operators with majority state capital, wage and welfare rights with an impact on the state budget generated, mainly, by the increase in the remuneration of the transport service public. infrastructure management expenses of approximately 978 million lei.
Modification of Law No. 127/2019 on the public pension system determines a reduction in the need for financing in 2021 of 8.922 million lei, respectively 0.8% of GDP.
The non-granting of holiday vouchers in 2021 results in a reduction of the budget deficit by 1,653.5 million lei, respectively 0.15% of GDP.
Repeal of art. 5 of the Government Emergency Ordinance No. 131/2020 on the regulation of certain measures, determines a reduction in the need for financing in 2021 of 23.8 million lei.
The “Austerity Ordinance” project
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