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January 31, 2023
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Hot disputes on the budgetary impact of salary increases. Labour Ministr stays firm: Romania’s budget cannot afford salary increases made before the electoral campaign

Labour Minister Dragos Pislaru (photo) says that all the salary increases in the health and educational system made before the electoral campaign involve a total gross amount of approx. RON 4.85 billion, which cannot exist, given that the budget deficit target assumed by Romania towards the European institutions is of 3 percent.

“All these increases, namely payroll increases, mean a gross amount of RON 4.85 billion”, stated Dragos Pislaru, according to news.ro.

Asked if Romania’s budget can afford to bear these increases, Pislaru said: “The answer is obviously no. The forecast for 2017 is already at the edge of that budgetary deficit of 3 percent. We have fiscal decreases provided in the tax code: one more percent from VAT, the pillar fee, excises. All these things involve resources from the budget.”

The Labour Minister says that the whole calculation made by PSD claiming that there are enough financial resources for the salary increases is based on false premises, because even if we’d consider that approx. 40 percent of the salary increases will return to budget as taxes on these salaries, we still cannot have a budgetary impact, there will still remain a pressure of RON 2.9 billion on the budget.

“They calculated the fees, they reached RON 2.9 billion, and they introduced an absolutely new and unfair element in the budgetary calculation, they introduced the second round effects (the reentry of the amounts in the economic cycle – e.n.)”, also stated Pislaru.

The Minister says that these salary increases made before the electoral campaign, combined with the fees decrease in 2017, will make the budgetary deficit target impossible to be achieved, so amounts dedicated to investments will decrease, or Romania will have to contract new loans.

“If these amendments will pass, the next Government will be in an almost impossible situation in which it will have either to opt for respecting the 3 percent deficit target, which means to diminish the investment expenses, or for increasing the income through a growing taxation, or to exceed the 3 percent deficit. And, in the last case, they will say ‘oh, look at what technocrats left to us, we can’t pay’”, added the Labour Minister.

 

Labour Minister’s explanations after his statement since Thursday which caused consternation: I’ve never questioned the right of vulnerable groups to be supported by the State

 

Supporting vulnerable people is an act of humanity, normality and civility, but social benefits are fraudulently shared; there is a significant number of people who don’t want to work since there are social benefits which, cumulated, discourage the work and the involvement in the society, wrote the Labour, Family, Social Protection and Elderly Minister Dragos Pislaru on his Facebook page on Friday evening, underlining that he never questioned the right of vulnerable groups to be supported by the State.

“A party led by a prosecuted person doesn’t deny itself and continues to manipulate people in an irresponsible and unscrupulous manner. I am dismayed to see that words I haven’t said, ideas that don’t belong to me, are assigned to me. I have never spoke about salary benefits in my yesterday statement, as it is claimed in a false manner in the release in which I am publically required to resign, I spoke about social benefits, wishing to underline the system fraud. I have never questioned the right of vulnerable groups to be supported by the State. Supporting them, either we speak about disabled persons, or about poor families without an income at the poverty line, long term unemployed persons without other financial means, is an act of humanity, normality and civility. These people need support from their peers, they need a safety system and more consistent resources from the state budget, compared to what they receive now. And we don’t have these resources today also because the social benefits are fraudulently shared”, Pislaru also stated.

He underlined that he will protect the rights that re honestly obtained, but he will plead for eliminating frauds from the system.

“According to DEX, a drone is “a person who doesn’t want to work and lives from others’ work”. To the dismay of many silent employees who are hardly working in our country, the fees they pay are fraudulently redistributed through undue social benefits, also to an important number of people who take advantage from the system or who are an obedient and resigned clientele for politicians. To the dismay of many silent entrepreneurs who create jobs, there is an important number of people who don’t want to work because there are social benefits which, if they’re cumulated, discourage the work and the involvement in the society. I have protected and I will continue to protect the rights honestly obtained, but I will plead to the same extent for eliminating fraud from the system, since we’re talking of much too dangerous situations, and I was referring to these situations in my statement. Every time, I encouraged the work, not the lack of work, and that’s why I launched, through a GEO, the bundle of active measures for creating new jobs, which will enter into force on December 1, in order to determine those who are discouraged today to stop being passive and to find a job, and these are the situations I was referring to in my statement”, wrote the Labour Minister.

He drew attention that financial resources are limited and they have to be enough for those who really need them.

Dragos Pislaru also stated that he has a honest position, explaining the truth based on the real data and figures, and that he condemns “irresponsible approaches that will destroy the budget”, according to Agerpres.

“Insults against Romanians are those lies which accusing politicians utter, the dangerous play with people’s expectations and beliefs when salary increases are promised, although we know so well that cannot be paid. Who offends Romanian people? Me, who have an open and honest position, explaining them the truth based on real data and figures, or the corrupt politicians who offend their intelligence, selling them false illusions, lying them in a shameless manner and saying them that their salaries and social benefits will be increased without any limit, although they know that these promises cannot be achieved. The same politicians who knew and know about the frauds in the social protection system, but they don’t react. Beyond the dirty war which the accusers try to start in the period of the upcoming electoral campaign, I am sure that Romanian people, especially teachers, haven’t forgot the situation in the end of 2008, when the same politicians promoted and voted the salary increase with 50 percent, although they now at that time that this will not be possible. All of us saw the consequences in these years. I believe my duty is to fight in order to present the real situation in a professional manner and to condemn irresponsible approaches that will destroy the budget, affecting most exactly those people who are working in this country. We need things that are thoroughly done, at the right time, we need responsibility and vision, but these issues are ignored by a strictly electoral approach whose interest consists only in votes”, also wrote Dragos Pislaru on Facebook.

He stated that “we need a new political class, without corruption, without capturing the state for the interests of the party group, without illegalities. This is the only way in which we can make a progress in this country. And the party accusing me missed that chance one year after Colectiv”, according to Agerpres.

 

 PSD is asking Pislaru to resign, after his offensive statements related to “the drones in the system”

 

Pislaru’s explanations come after Social Democrats’ harsh criticism to the statements made on Thursday by the Labour Minister, related to granting social benefits, saying that they represent “an obvious assumption of hatred”, his resignation being requested.

PSD Vice President Rovana Plumb asked PM Dacian Ciolos to immediately separate himself from the statements made by the Labour Minister, who claimed that State pays benefits to people “who stay, linger and are drones”.

“It’s shocking to hear a minister referring in such an offensive way to people! We are back a few years ago, when we were told that pensioners are ‘lazy’. (…) I thought this kind of messages, meant to induce hatred and to foment social groups one against other, represent an accident of the recent past. (…) I am publically asking to the PM to separate himself from the statements of the Labour Minister and to apologize to Romanians for these insults”, stated PSD Vice President, according to a press release sent on Friday to AGERPRES.

In her turn, PSD MEP Viorica Dancila stated that Minister Pislaru “incites to hatred”.

“A Labour Minister should be concerned for people, but qualifying those in need as ‘drones’ is the opposite. Mr. Dragos Pislaru incites to hatred against those who cannot afford to have a decent life by their own forces. It’s an extremely serious statement, reminding us of the extremist approaches. A Labour Minister should be concerned to provide these people with opportunities, not to ostracize them”, stated the leader of the PSD delegation in the EP, Viorica Dancila, quoted in a release sent to AGERPRES.

In her opinion, the current Government has passed over the limits of decency in its relation to citizens.

“A Government that thinks like this about its own citizens is a huge evil. A continuation of this government, with the same kind of people, with the same philosophy will only take us to a social and economic disaster, and to a separation inside the society, with extremely harmful results”, appreciated Viorica Dancila.

The leader of the PSD group in the Chamber of Deputies, Florin Costin Paslaru, also stated that “the technocrat Government’s arrogance has no limits anymore”.

“After the Finance Minister Anca Dragu told Romanian people to work for two lei, the Labour Minister Dragos Pislaru is now insulting citizens, saying, without proofs or reason, that those who are supported by the State, as in any democratic and European country, are ‘drones’.

According to him, the progress and economic increase should be also reflected in the citizens pockets – “including disadvantaged people and vulnerable groups”, according to Agerpres.

“It’s already obvious that the Ciolos Government is already wrestling with the Romanian people from the middle class, and the strongest evidence is the tenacious attack against all the projects initiated by PSD in favor of those who are suffocated in debts to banks, for reasons that cannot be imputed to them. Now, technocrats started the attack also against those who need the most to be supported by the State, namely the social vulnerable groups”, stated the leader of the PSD group.

Labor Minister Dragos Pislaru stated on Thursday, in a press release, that social benefits are granted also to people “who stay and linger and are drones in the system”.

“In this moment, we grant benefits to people who need them and who have to receive them, but we also grant them to other people who stay and linger and are drones in the system. In the same time, we provide services of an abominable quality, and this has to be changed! And I intend to do this, I want to see active measures that lead to creation of jobs, I want to see the social inspection that makes the social care field more credible, and I want to see the unitary pay law in which we work”, stated the Labour Minister.

 

 

 

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