ECONOMY FINANCE&BANKING

PM Orban: Romania’s state of finance is very bad. Payment of wages, pensions is a priority

Romania’s state of finance is very bad, as its previous government failed the revenue collection plans, freshly sworn in Prime Minister Ludovic Orban told a news conference at the Finance Ministry on Wednesday, where he attended a ceremony where Citu took over the portfolio of Finance Minister.

“I am today at the Ministry of Public Finance to officially install the new Minister of Finance, Florin Citu. I had some talks before this news conference on the financial state. As I have warned for at least a year, it is clear that the state of finance is very bad; in fact, that is visible from the official figures published: the 9-month implementation ended with a government deficit of 2.6pct, as against 1.6 in the same period of 2018. It is also clear that the collection plan was not met, and there is an 11 billion deficit. Also, the collection of contributions also over one billion in the red. There is a deficit in both the national budget and that of state social security and healthcare,” said Orban.

According to the Prime Minister, Finance Minister Citu will have to tighten the belts to a maximum and avoid any unnecessary expense.

“Also, we should see if we can make up for the delays in the collection plan as much as we can in the last 2 months,” said Orban.

On the other hand, he added that Citu will have to gather a team next week to present a detailed, up-to-date picture of the current situation and the measures he will take to try to confine the budget deficit, to stop some public expenses and to fight against big-time tax evasion.

 

Payment of wages, pensions is a priority, says PM Orban .People shouldn’t worry – minimum wage will increase

 

The payment of wages and pensions is a priority and, in the public sector, we will seek to pay the wages only to those employees who are doing their job and who are competent, Prime Minister Ludovic Orban told a news conference on Wednesday.

“Definitely, all the salaries and pensions will be paid. Moreover, there is a legislation in force which we observe. I would like to say once more that all the whoppers of the former Government and the PSD [the Social Democratic Party] leaders regarding the cuts of payment, wages are part of the disinformation practiced by the PSD leaders. Definitely, the payment of wages and pensions represents a priority. Obviously, we will seek to pay salaries only to those employees in the public sector who are doing their job and who are competent, who have the capability to deliver quality services. We will carry out an audit in two stages: an audit through the specialised people within ministries, afterwards, in the second stage, we will carry out an external audit which will also be aimed at entities subordinated to ministries. Certainly, we will continue various restructuring actions in different entities and we will basically focus on certain agencies, authorities, after completing this audit. Moreover, a new organisational chart will be adopted at every ministry and Government Decision will be adopted for the functioning of each ministry,” Orban stated.

The PM underscored that the procedure establishing the increase of minimum wage will be launched, based on some serious analysis.

“The minimum wage will increase as of next year. We will launch the procedure establishing the increase of minimum wage, obviously, based on some serious analysis, so that the proposal to increase the minimum wage relays on objective economic indicators, on the reality of the private milieu. We will consult social partners. It will be an increase of the minimum wage, people shouldn’t worry,” the Gov’t head stated.

 

FinMin Citu: So far, the budget execution is concerning, 10-month execution will show increase in deficit

 

The budget execution so far is worrying, we will continue to have an increase on the deficit at 10-month and the situation confirms our greatest fears, Public Finance Minister Florin Citu told a news conference on Wednesday.

“The budget execution so far is worrying. We will still have an increase on the deficit at 10-month. The situation confirms our greatest fears regarding the budget situation. I will present all the data next week in a press conference. Moreover, I want to announce you that I signed the postponement of the contest for the ANAF [the National Agency for Fiscal Administration], until March next year,” Citu stated.

The general consolidated budget ended the first nine months of this year with a deficit increasing to 2.6 percent of the Gross Domestic Product (GDP), 26.97 billion lei, respectively, a figure which represents an increase of 60 percent against the same period of last year, the data recently published by the Public Finance Ministry showed.

Between January-September 218, the consolidated budget recorded a 16.8 billion lei deficit, 1.77 percent of the GDP, respectively.

 

Related posts

Number of foreign capital companies registered in Romania up by 8.5 percent in January-May 2017

Nine O' Clock

Increased benefits for customers with the new mobile and fix offers from Vodafone

NINE O'CLOCK

County councils request Hungary’s Government to accept use of term palinka in Harghita, Covasna and Mures

Nine O' Clock

Leave a Comment