ECONOMY FINANCE&BANKING POLITICS

State budget draft and social security budget draft for 2017, adopted by Parliament. PM Grindeanu: I send a stability message to investors and confirm them Gov’t determination to support business environment

Parliament adopted on Tuesday the state budget law and the social security budget law for 2017. The state budget bill was passed with 208 to 105 votes, and the social securities bill was passed with 208 to 107 votes.

PNL, USR and PMP voted against the bills. The 2017 budget was adopted in record time, after two plenary meetings totalling just 13 hours of debate.

Premier Sorin Grindeanu took part in the vote. At the end of the voting procedure, he thanked the MPs for their rapidity and transmitted a message to the business sector, namely that Romania remains a country with a predictable economy.

“I thank Parliament for adopting, in an urgent procedure, the budget for 2017. We all need this budget. Maybe it should have been voted earlier had things followed a normal timetable, and that would have been good for Romania. I would like to transmit a message of stability for investors and to reconfirm the Government’s determination to support the business environment,” Premier Sorin Grindeanu stated after the vote.

During Monday’s joint meeting, Parliament adopted, article by article, the draft state budget law for 2017, as well as the budgets and budget addenda of over 20 main credit release authorities, in the form and with the amendments admitted by the Budget-Finance Committees, Agerpres informs.

 

Grindeanu: 2017 budget centred on projects; bookkeeping-type budget philosophy left behind

 

Premier Sorin Grindeanu stated on Tuesday that, for the first time, the budget adopted by Parliament is one centred on projects, a type of “bookkeeping philosophy,” namely the “bookkeeping-type state budget,” being left behind.

“I’m extremely happy that the state budget was adopted today and this is a positive thing. (…) It wasn’t a simple job to have – during this period, and within a fairly tight timetable – a budget that takes into account the governing platform. And this is an important thing, to change the philosophy on which this budget was built, a philosophy that is not just about bookkeeping as seen until now – the bookkeeping-type state budget. And I’ll explain it: each time there was economic growth or economic slump, each institution’s budget was generally hiked or lowered by that percentage. We, for the first time, have financed through this draft budget the projects we brought before the citizens as part of the governing platform and this was an extremely important thing for us. And, of course, there are measures which continue to exist, which were approved and date back from last year and which continue to be financed by this year’s budget too,” Grindeanu said in Parliament.

The Prime Minister added that another important message conveyed by the adoption of the budget was that “a step toward stability” has been taken.

In this context, Sorin Grindeanu said that although the budget was adopted a bit late the hope is that the potential delays in implementation will be gradually recovered.

“The fact that it’s a bit late, I hope we would recover gradually, we are nevertheless at the start of February. The elections were scheduled fairly late too, in early December, maybe the timetable could have been faster in order for us to get to work directly, namely to have a new budget faster,” the Premier added.

 

PM Grindeanu: I send a stability message to investors and confirm them Gov’t determination to support business environment

 

Prime Minister Sorin Grindeanu stated on Tuesday, after the vote in Parliament on the state budget draft for 2017, that he wants to convey a message of stability for investors and to confirm the Government’s determination to endorse the business environment.

“I wanted to be present today in the final voting for two reasons. First of all, to thank Parliament for adopting under emergency regime the budget for 2017. We all need this budget. Maybe it should have been voted a while ago, if things had been unfolding in a normal calendar and that would have been good for Romania. At the same time, I would like to convey a message of stability for investors and to confirm them the determination of the Government to endorse the business environment. We further take into account debureaucratisation, but also reducing fees and facilitating access to funding. We have to maintain further Romanians’ and investors’ trust in our economy as much as we have to accomplish all the investments that we proposed in 2017, in infrastructure and to fulfill, one at a time, all the measures from our governance programme,” Grindeanu stated in the Parliament plenary meeting.

He underlined that the budget for 2017 is focused on supporting the social policies and the development policies.

“It is a balanced budget, focused both on supporting the social and development policies. We fit (…) in a deficit of under 3 percent. We managed, for the first time, to allocate, just to give you an example, 2 percent of the GDP to the Army (…) and this happened for the first time in the budget of this year, 2017,” Grindeanu added.

The PM thanked the MPs for the rapidity to debate the budget.

“Moreover, the last thing that I want to mention today, speaking of investments and what has been discussed, before thanking you once again for your vote and for the manner in which you debated and for the rapidity which you debated with the state budget draft, that for 2017, for investments there are 10 billion lei in addition compared to 2016,” the Government head pointed out.

The budget for 2017 will fit the deficit target of below 3 percent of the GDP, Prime Minister Sorin Grindeanu stated on Monday, in the opening of the joint plenary meeting of the Deputies’ Chamber and the Senate.

“The annual budget is definitely an important moment for Romania, the Government and Parliament, as set as a priority are all projects and all short and medium-term public programmes. It is maybe the only moment in which the significance of the words in political statements is replaced with the cold reality of the figures in the state budget draft law and the social insurance budget draft. We can thus contribute to improving the quality of Romanians’ life in 2017, without pretending, however, that we please everyone. The budget draft for 2017 is configures on a macroeconomic framework with a GDP value of 815.195 billion lei and a 5.2 percent economic growth. The cash budget deficit is estimated at 2.96 of the GDP, while the ESA deficit stands at 2.98 percent of the GDP, keeping within the under 3 percent of the GDP budget deficit target, according to the Maastricht Treaty,” Grindeanu told the Parliament plenary meeting, in the debates regarding the budget draft for 2017.

According to him, the budget revenues projected for 2017 are estimated to 254.717 billion lei, 31.3 percent of the GDP respectively.

“The revenues from the domestic economy represent 235.5 billion lei, 28.5 percent of the GDP respectively and the amounts from the EU and other donors are estimated to 22.3 billion lei, out of which 12.4 billion lei on agricultural policy and 9.9 billion lei on cohesion policy and other programmes. The budget expenses are estimated to 278.817 billion lei, which means 34.2 percent of the GDP,” the PM mentioned.

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