Dismissed RO Govt. defers wage hike, but disburses money to local administration

Romania’s dismissed Government, in a meeting held on October 28, endorsed the disbursement of RON 400 mln (EUR 84 mln) to local administration for government-funded infrastructure projects and promised to disburse another RON 600 mln “in a following meeting”, Hotnews.ro reported.

Since the Government operates in reduced capacity, it can’t amend the budget planning - therefore the money is gradually extended from the Government’s special fund.

Initially, prime minister Viorica Dancila promised RON 1.4 bln (almost EUR 300 mln) to the heads of local administration.

Separately, in the same meeting, the Government of PM Dancila deferred the order by which the minimum net wage would have increased by RON 100 (EUR 22) and even more for those with higher education, as of January 2020.

PM Dancila said that she submitted the order to the Social Economic Committee for endorsement and will leave it as part of the set of bills to be passed by the next Government.

PM-designate Ludovic Orban made it clear that he was against the move and would reverse the minimum wage hike if operated by PM Dancila.

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