Romanian President promulgates this year’s budget law

Romanian President Klaus Iohannis said yesterday that he promulgated the law that sets the state budget and the social security budget for 2017. The President added that he keeps his objections related to the figures on which the 2017 budget is built. He said that the budget revenues are “over-optimistic” and the expenses are high. Iohannis explained that he decided to promulgate the law because Romania needs a budget. He asked the Government for responsibility. Prime Minister Sorin Grindeanu said yesterday in the Government meeting that the measures in the governing program are questioned due to the delay in having the budget promulgated. This delay has an impact not only on the ministries, but also on the local authorities. The Government approved the budget project for 2017 on January 31. On the same day, the Government approved the famous emergency ordinance no.13, which aimed to decriminalize some corruption deeds, which led to political chaos and massive street protests. The Parliament approved the budget law on February 7. This year’s state budget is based on an economic growth of 5.2%, an inflation rate of 1.4% and a net average salary of RON 2,274 (EUR 504). The budget revenues for 2017 are estimated at RON 254.7 billion (EUR 56.6 billion), or 31% of the GDP, up by 14% compared to 2016. The budget expenses total RON 278.8 billion (EUR 62 billion), or 34% of the GDP. The budget deficit is thus expected to stay slightly below 3% of the GDP. editor@romania-insider.com