National Liberal Party (PNL) President Ludovic Orban criticised, on Wednesday, the budget execution data for the first half of the year, stating that PSD should go home “and commit seppuku” and that the Government is unable to lead the economy and fight tax evasion.
“Based on data for the first six months of the year, the ruling party should go home. Should commit seppuku and go home. Albeit you have economic growth, budget revenues are basically more than 5 billion lei lower than forecast. Don’t fall for the tricks they’re pulling by saying revenues have grown compared to 2016,” Ludovic Orban stated.
The PNL leader said that, for the first time, the Government has included in the budget the European Union’s direct payments for farmers, in order to artificially lower the budget deficit.
“It’s obviously an accounting trick they’ve done and that should be disregarded. The reality is that, in contrast to the forecast included in the budget draft, revenues are lower by 5.8 billion, which shows that this Government is unable to lead the economy, unable to fight tax evasion, unable to ensure the necessary state budget revenues and, likewise, it has generated expenditures which lack any kind of support in economic reality,” Orban concluded.
On Tuesday, Premier Mihai Tudose stated that the budget execution in the first six months “is not looking very good, there is an immense obstruction.” Last week, Tudose also said that in some ministries the budget execution level stands at just 2 percent in the first six months of the year.
PNL lodges with Ombudsman request to notify CCR about ordinance concerning the supplementary taxation of part-time contracts
On Wednesday, PNL President Ludovic Orban lodged with the Ombudsman a request for it to raise an unconstitutionality exception in regard to Ordinance no.4/2017, which overtaxes part-time labour contracts, arguing that the said legislative act infringes upon five articles of the Constitution and two laws.
“I’ve lodged with the Ombudsman a notification, in order to prompt the institution to invoke an unconstitutionality exception in regard to Ordinance no.4, which regulates the payment of social security and healthcare insurance contributions owed for a minimum gross wage for those who work part-time. We consider that five articles of the Constitution are being infringed upon. Article 1, on the supremacy of the Constitution and of the country’s laws, because two laws are infringed – the law on transparency in public administration and the Fiscal Code,” Ludovic Orban stated.
The PNL leader explained that Ordinance no.4/2017 limits the right to work and discriminates between employees but also between employers. Likewise, he added that the ordinance infringes upon Article 115 of the Constitution, which forbids the amendment of an organic law via a simple ordinance.
“We consider that this legislative act reflects the Government’s desperation, hunger for money and desire to squeeze money out of stone, from any kind of citizen and any kind of company and through any means, even if they run counter to the Constitution,” Orban added.
PSD Vice President Florin Citu, who accompanied Ludovic Orban at the Ombudsman, said in his turn that the effect of the ordinance overtaxing part-time labour contracts will be to deter those who want a second job or who are simply looking for a higher income.
“It’s a measure that is attempting to bring in money to the budget, in the short run. The effect is to deter those people, those entrepreneurs, who want to hike their income, have a job and want a second one, but they’re being deterred. We see that those who want to work, who want to earn more, are being penalised, are being sent to the underground economy. Students who want to work part-time during the summertime will now have problems. There are mothers who maybe want to work part-time after they gave birth, so on and so forth. All these people are being penalised by this measure,” Citu said.
On Thursday, the Government approved an ordinance introducing the employers’ obligation to pay social security and healthcare insurance contributions, calculated at the level of the gross minimum wage (RON 1,450), for employees with part-time contracts, regardless whether their wage falls below the minimum wage level. Pupils, students and pensioners are exempted from this stipulation.
The National Council of Romanian SMEs (CNIPMMR) filed a similar request with the Ombudsman, being of the opinion that the government ordinance that introduces the payment of social security and healthcare insurance contributions, calculated at the level of the gross minimum wage, for employees with part-time contracts, in essence affects the employers’ property right, which infringes upon Article 44 of the Constitution, “in relation to the infringement of the employer’s property right, by forcing them to pay social contributions that are higher than the labour performed by the employee on the basis of labour rapports.”
On Monday, USR sent an open letter to the Ombudsman, asking it to notify the Constitutional Court about the government ordinance that modifies the tax levied on part-time labour contracts. The Save Romania Union (USR) considers that the decision to levy taxes on part-time contracts at the level owed for a minimum wage payable to a full-time employee represents an abuse toward employers and low-income people and infringes upon the constitutional provisions in the fiscal field.