Prime Minister Florin Citu said on Monday that the 2021 budget will be built with a deficit of 7 per cent of GDP, which shows the commitment to fiscal consolidation, noting that it is a budget that does not put a brake on the economy.
“We have already seen discussions in the public space and we need to clarify for next year’s budget what measures remain and how they will be extended. For next year’s budget, we stick to what we have said so far: we are in favour of fiscal consolidation, which means that we will build a budget with which we will come to Romania’s Parliament with a budget deficit of around 7 per cent of GDP, which shows, on the one hand, our firm commitment to fiscal consolidation and, at the same time, is a budget deficit that, in the current economic context, does not put a brake on the economy. Fiscal policy remains stimulating in 2021, it is true, as we estimate, in the first part of the year and it will move towards a neutral fiscal policy in the second part of the year,” said Citu, after the Government’s meeting.
Salaries, bonuses of public workers to freeze in 2021, holiday vouchers in electronic format only
The salaries and bonuses of public workers will maintain throughout 2021 at the same level with the one granted for December 2020, the value of fine point will remain at 145 RON, and the holiday vouchers worth 1,450 RON will also be granted next year, but will only be issued in electronic format, according to a draft bill published on the website of the Ministry of Public Finance (MFP).
“Starting with January 1st 2021, the gross quantum of basic salaries / military pay / monthly allowances of the personnel, paid from public funds, will remain unchanged, to the same level of that of December 2020, as long as the personnel occupying the same position is carrying out their duties in the same conditions”, the above-mentioned document says.
According to the draft bill, in 2021 the food allowance will remain the same as in 2020, and the monthly quantum of merit allowances remains at the level of 6,240 RON.
“The action of maintaining giving out holiday vouchers, worth 1,450 RON, until the 31st of December 2021 (…) will support the hospitality industry, which was severely hurt by the effects of the COVID-19 pandemic, in the sense of recovering the losses as a result of suspending tourist activities, such as housing and / or restaurants or restricting circulation of people in certain high risk areas,” the explanatory memorandum reads.