The Budget Bill Has Made its Way to Parliament

The two bills, which were first discussed for a few days and then voted on in the budget and finance committees, essentially provide for more money for investment, freezing pensions and a 15% increase in public sector salaries, which had been cut by 25% this summer.

According to the finance minister, Gheorghe Ialomitianu, the budget bill is solid, relying on economic growth and investment. It supports a more efficient and flexible state. The version presented by the government, which did not undergo significant changes by Parliament’s specialised committees, provides for a budget deficit decrease from 6.8 to 4.4% and a targeted 3% deficit in 2012. Next year’s budget provides for a reduction in current expenses and spending related to personnel, social assistance and goods and services.

That next year will also be an austerity year is demonstrated by the fact that there is no money allocated to merit pays, overtime, performance bonuses and holiday bonuses. From the opposition, the Social Democratic Party and the Liberal Party say they are disappointed with the state budget bill, which in their opinion gives the finance ministry discretionary power to allocate the budget resources.

The Social Democratic MP Viorel Stefan is the head of the budget committee in the Chamber of Deputies: “We are talking about many billions of lei which, during the execution of the 2011 budget, could be distributed according to political preference or the mood of the person who distributes the funds without any transparency whatsoever.”

“This budget bill is bad for Romania, with 2011 being the third year in a row characterised by economic recession with no hope of improving the living standard of the population”, the deputy leader of the Liberal MPs Eugen Nicolaescu told the daily paper Bursa. Under the circumstances, does the budget bill for 2011 have any chance to be passed?” The Liberal Democratic Party MP William Branza from the ruling party told the daily paper Evenimentul Zilei that the budget bill has every chance to be approved, because his party has a clear majority. The newspaper thus concludes that the 2011 budget will easily go through Parliament.