Finance Ministry Eugen Teodorovici said on Tuesday the Government has money for investments, expenditures on wages and pensions this year, adding however that if a public expense may be adjusted, this should be done.
Asked if the paper sent to institutions referring to expenses cuts is real, Teodorovici said they should conduct an analysis and act correspondingly.
“The Finance Ministry said there are some limits this year, and every ministry, public agency, public structure should conduct an analysis and if some expenses can be adjusted, then they have to adapt them correspondingly. That’s all. This does not mean we do not have the money. There is money until the end of the year for our commitments, for investments and expenses related to people’s revenues, pensions and wages. I repeat, if some expenses can be logically adjusted, why shouldn’t they do it?” the minister said on Tuesday, at the end of the meeting with Bucharest district mayors and Bucharest Mayor General.
Teodorovici added that the first budget rectification this year should include an analysis so that we know exactly the direction considered by the Government.
Asked about layoffs, the Finance Minister said “nothing this sort” will occur.
Teodorovici claimed Romania could face the situation of not having deficit in two-year’s time, but currently investments are needed.
USR Senator Vlad Alexandrescu claims the opposite
The statements made by Teodorovici come hours after USR Senator Vlad Alexandrescu posted on Facebook a document reading that the PSD-ALDE Government is allegedly preparing layoffs and wage cuts for public employees.
Alexandrescu has posted a document Finance Minister Teodorovici has reportedly sent to all public institutions in the country, asking them to conduct layoffs.
“The PSD-ALDE Government is preparing for layoffs and wage cuts in the public sector. The aberrant fiscal and economic decisions adopted by the PSD-ALDE governance in the past two years, under Liviu Dragnea and Darius Valcov, have led to a major budgetary crisis. The expenses are on the rise, whereas revenues can’t keep up. The populist electoral promises and the fiscal measures in favour of the companies and institutions close to the political clique in Bucharest and to the barons in the country risk leading us to a budgetary collapse this autumn. Facing such a crisis, Orlando Teodorovici has sent to all public institutions in the country, including to cultural institutions and research institutes, a notification requesting ‘the cut in the number of employees and/or cuts in wage rights’,” Vlad Alexandrescu wrote on Facebook.
The USR Senator claims the Government lacks the money for wages in the fourth quarter and the austerity measures are meant to drastically reduce the expenditures with wages for public employees.
“Teodorovici’s ultimatum reveals the unrealistic and toxic character of this governance, which acts in a hypocrite and populist logic, increasing the expenses without being sure that they have the revenues. After adopting special pensions and increasing the dignitaries’ indemnities, the PSD-ALDE governance threatens to operate wage cuts and payoffs in the public sector. Information from public institutions say that the wage fund is incomplete for September to December, due to ‘thinking by quarters’ invented by Valcov,” the USR Senator wrote.