The 2016 Draft Budget

The 2016 state budget was drafted on the basis of several principles, among which fiscal stability and a better relation between citizens and state institutions.

Daniela Budu, 04.12.2015, 13:50

In Romania, the
2016 state budget was drafted on the basis of several principles, such as
ensuring fiscal stability and predictability, a more effective use of budgetary
resources, enhancing the transparency of the fiscal-budgetary policy and
changing the relationship between the state and citizens. According to the Finance
Minister Anca Dragu, next year’s budget will provide for a 5% increase in
pensions as well as the salary increases in the public sector established by
the former Ponta government and endorsed by Parliament.

The minister has also presented the main macro-economic
indicators: a deficit below 3%, a 4% economic growth, public investment
accounting for some 8.5 billion Euros and a GDP of some 180 billion. No decision
has been made yet concerning the growth of the minimum salary to 270 Euro, as
promised by the previous government.

Finance Minister Anca Dragu: We’ve
started a study to see if increasing the minimum salary would affect Romania’s
competitiveness and would thus affect the entire economy. Depending on the
conclusions of this study, we will establish the stages in which the increase
could be operated. At the level of the EU, many member countries raise minimum
salaries on the basis of very clear economic models, in which all the potential
consequences and implications are very well balanced, and thus the economy is
protected from negative effects .

The Liberals have
announced they will support the draft budget if their requests are included in
the document that will be submitted to Parliament for approval. The
co-president of the National Liberal Party, Alina Gorghiu, has stated that the
Liberals would like to see an increase in the amounts earmarked for investment,
health-care, education and defense.

Alina Gorghiu: If in
2016 we manage to avoid things like
demagogy and populism, which do nothing but raise expectations that are
impossible to come true when the deficit is within the margins of 3%, then the
right balance will be stricken and we will have a normal partnership between
parliament, government and presidency.

The Social -
Democrats have stated they will vote in favour of the 2016 budget bill provided
the commitments made by the previous government are maintained. Here is the
president of the Social Democratic Party, Liviu Dragnea:

If the
social commitments we made through the previous government are included in the
bill, namely the already approved salary and pensions raises, as well as the
money for education, health-care, infrastructure and local development and the
increase in the minimum salary, as we committed ourselves to doing, then we
will support this budget.

The 2016 draft
budget is to be adopted by Government next week and then submitted to
Parliament for approval on December 17th at the latest.