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August 15, 2022

PM Citu: Revenues lower than wage costs in half of territorial administrative units

Prime Minister Florin Citu argued on Monday, at the beginning of the General Assembly of the Association of Romanian Municipalities, in favour of a spending reform at the level of territorial administrative units (UAT), mentioning that in half of the cases own revenues or even total revenues are lower than wage costs.

“This is not a sustainable model and we need to see how we find a solution here. At the same time, the collection rate, in many of the UATs, is not where it should be and here we can discuss why some of the UATs prefer not to be on ghiseul.ro or other systems that would help the collection. (…) I have two things that I would like to discuss – because we have discussed them before. It is about a spending reform – let’s look a little at the expenditures – and of course at the collection degree,” said the prime minister.

He also announced that he wants the way of allocating the PNRR (National Recovery and Resilience Plan) funds intended strictly for the territorial administrative units to be debated in the general assembly of the Association of Romanian Municipalities (AMR).

“We will find a solution together, but it is clear that 2.1 billion euros will come to you for projects, but together we must find a way to allocate these resources, how we do that: in a competitive manner, depending on the number of inhabitants, everyone should receive the same amount … But we would like us to hold this debate as well and then find a solution,” said the prime minister.


Budget amendment, presented in coalition, but decision on allocating money, in Government


Prime Minister Florin Citu declared on Monday, that the budget amendment will be presented in the ruling coalition, but the decision on how the funds will be allocated belongs to the Government.

“Of course we will present it in the coalition, just as we presented the budget last year in the coalition – it is normal – or the budget allocation for this year. But the decision and the way the money will be allocated will be made by the Government and it is not made on political criteria. This is the Romanian people’s money, from their taxes and they will always be allocated on the principle of transparency and efficiency. This money will go where it will have the largest yield in the economy,” the PM said, in a statement given to the press.

The chairman of the National Liberal Party (PNL), Ludovic Orban, declared on Friday evening that the budget amendment will have to be made with PNL’s and the coalition’s agreement. Asked if the amendment needs to be made by PM Florin Citu, who is interim with the Ministry of Finance, or by the future Finance Minister, Orban replied that this needs to be made with the agreement of PNL and the coalition.

“The budget rectification needs to be made with the agreement of the PNL and the PNL leadership. Furthermore, with the coalition’s approval. The amendment, just like the state budget draft law, are being debated in both the party and the coalition and will be the fruit of the decisions made until now in the coalition,” the liberal leader said, according to Agerpres.

PM Florin Citu gave assurances on Monday during the debut of the General Assembly of the Association of Municipalities in Romania, that budget amendments will be made within the Romanian Government, and “not in the party”, as long as he will hold the position of Prime Minister.

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