Romania’s government endorses mild austerity budget revision
The government of Romania approved on May 12 the ordinance that provides for reducing public spending, in the form published by the Ministry of Finance earlier in the week, leading to a modest and insufficient RON 5.3 bln (EUR 1.1 bln, 0.3% of GDP) overall reduction in public spending.
The government initially estimated a RON 20 bln negative deviation from the budget revenues target set under the budget planning for the whole year.
The specific measures envisaged prompted criticism as well. While the executive was supposed to cut the so-called “special pensions,” it ended in cutting the public lightning budget and the budget of “Timisoara - European capital of culture,” the mayor of Timisoara, Dominic Fritz, commented, quoted by G4media.ro.
According to the ordinance passed by the government, there are monthly spending limits set, approved by the government, for authorising officers, providing for a 10% reduction in expenditures on goods and services for 2023.
The ordinance also institutes a ban on the purchase of cars and furniture, except for those through the car replacement scheme, as well as the freezing of filling vacancies, except for some positions approved by the government, Profit.ro reported. Restrictions on the procurement of furniture and cars also apply to state-controlled companies and autonomous authorities.
(Photo source: Gov.ro)