The draft state budget law will be approved with a deficit target of 7.16 percent and with the same parameters of expenditures and revenues, Prime Minister Florin Citu declared on Thursday.
“The budget deficit remains as we have established, there are changes maybe inside, different allocations, more commitment appropriations. We are not talking about more budget appropriations. (…) But the budget deficit remains at 7.16 percent, with the same parameters expenditures and revenues. You have seen very well today the opinion of the Fiscal Council, which says that it is a credible budget and believes that this budget deficit can be reached this year,” the prime minister told a press conference at the Victoria Palace of Government.
Moreover, when asked about the negative opinion on this bill given by the Economic and Social Council, the prime minister replied: “Yes. Interesting, isn’t it?”.
“The budgets that destroyed Romania between 2017 and 2019 received positive opinions, the budgets that increased unsustainable budget expenditures, especially personnel ones, received positive opinions, the budgets that restricted the economic space in Romania and introduced all kinds of interventionist laws received a positive opinion, and this budget, which receives, for the first time, a positive opinion from the Fiscal Council, from professionals, those who are professionals say that it is a credible budget, receives a negative opinion. But in the end, you know how it is, politics is still a problem. Political decisions are still a problem in Romania, that’s why I said that we have to make the reform from the ground up and I assume this,” Florin Citu pointed out, according to Agerpres.
The head of the Executive stressed that is no need to introduce new taxes in the next period and argued that additional revenue to the budget could come from “economic performance above expectations”.
The Prime Minister emphasized that the resources allocated in the 2021 state budget for investments are “at a historical level”.
Emergency Ordinance on freezing the pension point for 2021, adopted by the Government
The Government approved the emergency ordinance on reducing structural expenditures, which provides, among other things, for maintaining the value of the pension point at 1,442 lei in 2021 and eliminating the 30 percent COVID bonus granted to Prefecture staff, Prime Minister Florin Citu announced, on Thursday.
“The emergency ordinance on some fiscal-budgetary measures was approved, as well as for the amendment and completion of some normative acts. This is the emergency ordinance we needed to be able to adopt the budget law. This ordinance will be published in the Official Journal and, after that, tomorrow, we will have a Government meeting in which we will approve the 2021 budget law,” said Citu, at Victoria Palace of Government.
According to him, the bonus for the Prefect’s institutions staff of 30 percent was eliminated, and the value of the pension point will be maintained at 1,442 lei in 2021, achieving saving of almost 9 billion lei in the state budget.
“The entry into force of Law 195/2020 on the status of railway staff is postponed until April 1, 2022. A necessary legal framework is established so that the remaining unspent amounts from the allocations for student transport facilities can also be used by universities in the coming years for the allocation of scholarships for students. The National Education Law is amended in the sense of establishing the right of students to benefit from a 50 percent reduced fare for means of transport and the repeal of the provisions regulating that students benefit from gratuities,” specified Florin Citu, according to Agerpres.