Romanian prime minister Florin Citu announced on Wednesday, December 30, that his cabinet would submit the budget planning for 2021 to the Parliament at the end of January.

Detailed evaluations will begin next week with each ministry, he added, quoted by Digi24.ro.

Even if the legal deadline for completing the budget planning has passed, PM Citu ruled out the option of taking responsibility for the budget law as the previous Government did with the 2020 budget planning.

PM Citu explicitly wants the Parliament to debate the 2021 budget. The Government is targeting a deficit of 7% of GDP for 2021.

PM Citu explained that, through the emergency ordinance adopted on Wednesday, which froze public servants' salaries, among other measures, the state would save RON 17.6 billion (over EUR 3 bln, or 1.5% of GDP).

"This ordinance is a guarantee that we can put the economy back on track," said Florin Citu.

Regarding child allowances and pensions, PM Citu stressed that the Parliament has the final word on these decisions.

Still, the budget will be built on the legislation in force until other changes occur.

"I can assure you that allowances and pensions will increase in 2021. We will find the best formula," said PM Citu.

However, he pointed out that fiscal consolidation is needed in the future budget. This detail is particularly taken into account by the rating agencies.

(Photo: Pixabay)

andrei@romania-insider.com