Discontent over the upcoming budget

The state budget for 2021 is not yet ready, although we're 40 days into the new year.

Bogdan Matei, 09.02.2021, 14:00

The state budget for 2021 has been under
constant debate these days, its adoption having been postponed against for next
week. The ruling-coalition Government says the budget will observe a 7% deficit
target, will support economic recovery and will cap unnecessary and excessive
spending of public money. During the pandemic, the budget was strained by high
healthcare costs, and building the new budget is difficult. Coalition leaders
on Monday decided to further cut back on spending. They announced pensions
won’t be going up as planned in September this year, but starting January 1,
2022. In turn, employees in the public sector will see their holiday vouchers
slashed this year. Certain bonuses may also be cut, such as the so-called COVID
bonus, accounting for 30% of the base salary, awarded to employees in the
prefect’s offices. Meal allowances awarded to public sector employees could
also be reduced. Child benefits won’t go up this year, and the authorities are
planning to reduce subsidized transport for students. Liberal leader Ludovic
Orban tried to explain this package of measures, which many see as an austerity
one.

Increasing the pension point is based on a 100% offset of the decreasing
purchasing power as a result of inflation, and increasing the purchasing power
by increasing the pension point by 50% of the increase in the average national
wage. No holiday vouchers will be issued this year, because last year’s
vouchers are valid over the course of 2021 as well.

This announcement added to the
disgruntlement of the hospitality sector, where companies have been severely
affected by pandemic-related measures. Losses in this sector run up to €7
billion, says Daniel Mischie, the president of the Organization of Employers in
the Hospitality Sector in Romania.

Don’t tourism units need help too? Don’t
they need compensations as well? We’re asking why a quarter of our venues stay
closed today. First of all, they lack the financial resources. Secondly, they
lack predictability. This industry accounts for 7% of Romania’s active
workforce. There are 400 thousand people working in various parts of this
sector. We account for 5% of Romania’s GDP. Over the coming three months, the
Government must come up with a solution to offset all the restrictions taken
against this industry. We don’t see this happening. There is no greater urgency
on the Government’s table right now, other than the 400 thousand people waiting
for help.

In turn, students’ organizations have
called on the Government not to cut back on its transport subsidies.
Social-Democrat leader Marcel Ciolacu has accused the coalition of implementing
inconsistent policies and allocating funds randomly to serve their political
clients. (V. Palcu)