Government works on 2022 budget
The draft budget for next year should be finalized on Monday, and submitted to Parliament for endorsement until December 23
Daniela Budu, 09.12.2021, 14:00
The governing coalition made up of the National Liberal Party (PNL), the Social Democratic Party (PSD) and the Democratic Union of Ethnic Hungarians in Romania (UDMR) has promised to complete the 2022 draft budget by Monday so that it can be green lighted by Parliament until December 23. The coalition partners have already had three rounds of negotiations this week, and have scheduled another one for Friday, to debate topics such as the national budget, the green pass, the distribution of money received under the National Recovery and Resilience Plan and of the prefect and state secretary positions. One of the hot topics was the so-called solidarity tax, proposed by UDMR, a 1% tax on the turnover of large companies, which would bring more money to the budget for healthcare and education. The measure is firmly rejected by the PNL and the business circles. Liberal leader Florin Citu has reminded that large companies contributed with taxes paid in advance last spring, when the economy was blocked.
Florin Citu: “During the crisis period of 2020 and 2021, these companies, which today we want to fine by introducing this tax, paid their taxes in advance in April 2020 when the economy was blocked, so that we can have money for pensions and salaries. I do not believe it is natural for the Romanian state to fine these companies today, for reasons I don t understand, as I cannot see the destination of this money”.
In his turn, PM Nicolae Ciuca has given assurances that there will not be such tax. Nicolae Ciucă: “As provided in our governing programme, we will not have this tax this year. The governing programme was approved in Parliament and it will be applied as such.”
The PSD leader, Marcel Ciolacu, who has not ruled out the idea of this tax, said it all depends on how the budget is structured. Marcel Ciolacu: “Let us see the budget figures first. The idea of this tax has been put forth, but we specified, in our governing programme, that only next year we would discuss on introducing or not additional taxes. In any case, under the law it taxes six months to apply a new tax decided by the coalition. It may not be introduced, after all.”
Discussions in the governing coalition were also tense around topics such as finding resources to increase revenues to the state budget needed to raise pensions, child allowances and social aid for people with disabilities starting January 1st. PM Ciuca has given assurances that the funds needed for bigger allowances and pensions, assumed under the governing programme, will be secured. The coalition partners will also have to agree, in the next meeting, on the green pass for employees. Health Minister Alexandru Rafila says that the document should be mandatory only when the infection rate is high. (EE)
