Romania's Govt. spent just over EUR 1 bln to fight the coronavirus in H1

Romania's expenditures from the state, local and social security budgets dedicated to mitigating the effects of the pandemic until June 30, amounted to RON 5 billion (just over EUR 1 bln, or 0.5% of this year's projected GDP), according to a report released by the Court of Auditors, Agerpres reported.

The institution completed and submitted to the Romanian Parliament its special report on the management of public resources during the state of emergency on August 11. On August 12, prime minister Ludovic Orban is expected to present to the lawmakers, at the request of the main opposition party (Social Democratic Party), his cabinet's specific actions in recent months, and the plans for the local elections and resuming school.

Finance minister Florin Citu claimed that half of the 4.2%-of-GDP budget deficit in the first half of the year was caused by the measures taken for mitigating the coronavirus pandemic. The estimate includes, as opposed to the Court of Auditors' figures, indirect measures as well (such as deferring tax payments).

The document compiled by the Court of Auditors is based on a comprehensive control, carried out between May and July 2020, at 949 entities in the central and local public administration. To respond efficiently and quickly to Parliament's request, the supreme audit institution mobilized more than 700 external public auditors.

Out of the total EUR 1 bln anti-coronavirus expenditures estimated by the Court, 73% account for the subsidies paid to employees under technical unemployment (RON 3.69 bln). Another 13% are the allowances granted to other categories of staff whose activities were interrupted or took place at a very low level (RON 662 mln). The expenses for medical emergency stocks (RON 266 mln) represented just 5.3% of the total sum.

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