The government would reduce "as much as possible" the state's expenses

The governing coalition has agreed on an "extended" plan for the maximum possible reduction of state expenses, announced on Monday, July 31, Prime Minister Marcel Ciolacu, who pointed out that in the effort to reduce the budget deficit, the hard work must be carried out first by the state, not by the citizen and the private environment.

He claimed that the impact of these measures will be around 5.8-6 billion lei by the end of the year.

The Prime Minister added that it was also agreed to reduce the number of management positions in the public system and cap management allowances at state companies.

"We are introducing a clearer system for monitoring performance indicators for state authorities in order to favor projects and investments that really make a difference. We will force the process of decentralization of some decisions, especially to build a legal framework for consortia or procurement partnerships centralized. That's the only way there will be significant and constant long-term savings in the state budget", said the prime minister.

According to him, natural resources owned by the state will no longer be concessioned at "ridiculous" prices, and the first step is to update all royalties with the inflation rate.

"The impact of the measures to reduce state expenses will be around 5.8 - 6 billion lei by the end of the year. The amount will be approximately equal to what we propose to bring as additional revenues to the budget by eliminating some tax exceptions. Because we think it's right: there should be a joint effort, distributed balanced in society, for a more flexible and efficient state, in which there is more equity and transparency!", indicated Marcel Ciolacu.

Translated by: Radu Matei