Romania’s Parliament has endorsed the 2024 budget

The 2024 budget is investment oriented and stipulates higher salaries and pensions, the PSD-PNL majority says

Ştefan Stoica, 21.12.2023, 14:00

The ruling Social-Liberal coalition in Romania has imposed its viewpoint and the budget it proposed has been endorsed by the Legislature. The move was preceded by three days of heated debates, often teetering on the brink of indecency. Responsible for the situation were again the representatives of the radical-nationalist and populist group the Alliance for the Union of Romanians, also known as AUR, and which has generally been described by the press and the other parties as belonging to the extremist wing.

The AUR eventually refused to cast their vote disgruntled with the rejection of their amendments to the daft budget. According to the initiator, the PSD-PNL Executive, the budget, which has been designed on a 3.4% economic growth and a 5% deficit, is investment oriented and based on a concrete plan of budget expenses and a measure package aimed at improving tax collection and effectively fighting tax evasion.

This budget is for Romanians, the Social-Democratic Prime Minister, Marcel Ciolacu said after endorsement.

Marcel Ciolacu: „This is not a budget for politicians, but a budget for development. We are covering investments, which are higher than consumption this year as well. And last but not least, taxes arent going to increase next year.”

The Prime Minister has rejected the allegation of an overrated budget and pledged over 80 thousand new jobs and 5% pay rises in the public sector. Furthermore, the Executive will accomplish all objectives assumed, including the digitization of the National Agency of Fiscal Administration, the Prime Minister pledges.

The opposition Save Romania Union (USR) has lashed out at the new budget, which they deemed as unrealistic and cast a nay vote. Here is USR president Catalin Drula

Cătălin Drulă: „Its the second year in a row when you come up with a budget based on overrated incomes and underrated expenses. A gap of at least 8 billion euros and a budget deficit of 130 billion lei – these are the budget coordinates you proposed to Parliament.

The Liberal MP Florin Roman retorted: „Thats another lie. They say there is no money for investment and we have over 7.1-7.2 % of the GDP for investment. We have the National Liberal Programme Anghel Saligny. The privately administered second pension pillar is growing and nobody is going to touch it.”

Several thousands amendments have been proposed to the new budget and a few have been endorsed. Some have been proposed by the power and others by the opposition and they will be funded through the redistribution of funds.

The social security budget proposed by the government has also got Parliament support. Among other things, it provides for pension raises as of January 1st according to the inflation rate of 13.8% and other pension raises to be applied in September, under the new pension law.

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