Finance Ministry releases budget rectification draft, nails layoffs across state institutions

Finance Ministry has published the budget rectification draft, with the consolidated general budget expenses increasing by RON 3.954 million, while the cash consolidated budget deficit stands at 2.76% of GDP.

The revenues of the state budget for 2019 is increasing by RON 2,250 million.

Ministries such as Education, European Funds, Research and Innovation, Agriculture, Business Environment, Economy, Environment, Transports, are losing money, while others are gaining more: Finance Ministry, Development and Public Administration, Labour ministry or the Romanian Intelligence Service (SRI).

However, in a press conference on Tuesday, FinMin Teodorovici explained that the budget rectification does not entail funding cuts from ministries such as Transport, Health or Education, but the ministers are compelled to spend the allocated money.

There are no cuts from education. There are roughly RON 1.02 billion (…) There is RON 400 million in terms of salaries, because an overestimation was made at the beginning of the year and if you talk to everyone in the trade unions, you would see that the amounts are sufficient until the end of this year, so not until the second rectification, but until the end of the year. Moreover, there is a project worth RON 450 million related to that program or measure with the school bags, the school supplies (…) I have also reimbursed from the European Funds, from that FEAD Program [the Fund for European Aid to the Most Deprived]. (…) Nothing will be affected,” said minister Teodorovici.

The Ministrer of Public Finance has stated that the Start-up Nation Program will not be affected either, and it “goes on as planned, without any problem”.

At the same time, the Finance Ministry has announced that 50% of the secretaries of state and employees in certain state institutions and ministries will be laid off.

Hiring in central administration institutions will be frozen. One in three positions will be vacant, namely one position will be filled in three vacancies.

budget rectification draftFinance ministrylayoffsstate institutions
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