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July 31, 2021

Boc: Chances are scarce for a cut in social insurance contributions

Next year’s budget won’t stretch beyond its means and will include reasonable politics, with slim chances for a cut in social insurance contributions (CAS), and public employee salary increases will depend on economic growth, PM Emil Boc said during a national television program Friday, Me­diafax reports.

Boc also said Romania should remain extremely cautious in 2012, should have a balanced budget and borrow as little as possible, given all the next year’s economic growth prognoses were revised down.

“The EU-wide economic growth for this year was revised down, from 1.8 pc to 1.7 pc, and from 2.1 pc to 1.4 pc for 2012. It appears that Santa Claus’ reindeers won’t bring very good news for the whole of Europe.

The EU economic growth being revised down is no good news, including for Romania, which will have to scale down next year’s economic growth forecast,” the PM explained, according to whom, while last spring, Government agreed with the European Commission (EC) over a 2012 economic growth estimate of 3.5-4 pc, which was taken into account when the state budget bill was drafted, fresh talks need to be held now, following this trimmed-down economic growth prognosis”.

Emil Boc added that Romanian authorities are conducting negotiations with EC officials, and representatives of the Prognosis Commission and of the National Institute of Statistics are discussing with EC officials about revising Ro­mania’s economic growth prognosis for 2012.

For this year, Government and the International Monetary Fund (IMF) stake their bet on an economic growth of 1.5 pc.

Jeffrey Franks, the head of the IMF Mission to Romania, has recently said that the IMF will revise down to nearly 2 pc Romania’s economic growth forecast, half the original estimate, given foreign contagion risks are reckoned as higher now than before.

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