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Bucharest
June 18, 2021
BUSINESS

New “painful” financial correction measures for the budget

Premier Victor Ponta announced during yesterday’s government meeting that a new “painful” measure for the budget will be adopted next week, the one concerning financial corrections, pointing out that it cannot be imputed on administrative-territorial units that are not at fault for the irregularities noted as a result of projects that benefitted from the EU’s financial support.
He added that the absorption rate of 20 per cent of European funds represents an enormous value compared to the results of recent years, but is very little compared to Romania’s needs. “We’ve adopted all necessary measures, to facilitate payments, to lower the red tape, however the ball is now in the management authorities’ court. Each minister has responsibility for one of them and you have to put pressure in order for us not to end up unblocking the programs but lacking projects,” the Head of Government underlined. European Funds Minister Eugen Teodorovici stated on May 25 that Romania has to bear financial corrections of approximately EUR 700 M because of the irregularities noticed as a result of projects that benefitted from the EU’s financial support. Minister Teodorovici stated that for the time being the source from which these corrections will be covered – whether from the state budget or from the beneficiaries that did not respect the rules – is not known.
At the same time, the financial corrections applied by the European Commission for irregularities discovered in the local authorities’ handling of public tenders will be covered by the government from the state budget if the authorities’ decision was based on the prior approval of the Central Unit for the Verification of Public Procurements (UCVAP) and the National Authority for the Regulation and Monitoring of Public Procurements (ANRMAP). The government will regulate this process through an ordinance.
PM Victor Ponta also announced that today he was going to present the new investment projects in Romania, being set to display detailed information on the amounts to enter the country and the number of jobs to be created.
In other developments, Cluj-Napoca Mayor Emil Boc claims that “the Ponta government swindled local administrations by nationalizing sums from the money collected as judicial stamp taxes,” the City Hall set to register a deficit of EUR 1 M in its 2014 budget, Mediafax informs. According to him, “the bleakest part” is that on January 1, 2014, the local budget will be left with 55 per cent of these taxes, while the government will be left with 45 per cent. He underlined that this year’s budget execution will be affected in the city considering that a sum of RON 1.3 M will no longer enter the budget.

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