Gov’t Oks 2016 draft budget. Pension point to grow by 5 pc. No premiums and bonuses for state employees

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The Government on Wednesday approved the 2016 draft budget, informed Dan Suciu, the Government’s spokesperson.

The minister delegate for Public Consultation and Social Dialogue also had a meeting with the civil society representatives on Wednesday, with some of the participants’ proposals being included in the final draft.

On Wednesday too, Gov’t decided the pensions to be indexed next year by 5 percent, instead of 4.31 percent, as revealed from previous calculations, so that the pension point will reach to RON 871.7 from RON 830.2 this year, according to an emergency ordinance.

At the same time, Gov’t has decided that public sector wages in 2016 to remain at the level of December 2015.

Thus, Ciolos Executive approved on Wednesday the Emergency Ordinance which states that it will not be granted a number of rights to budget staff in 2016, as it happened in previous years, such as meal tickets, gift or holiday vouchers.

It also will not be paid the overtime, following to be compensated with time off only, and will not be granted benefits upon retirement or passing in reserve or withdrawal.

In another context, the minimum wage increase could take place after a study of the impact, and it will be done in the first quarter of next year, Fin Min Anca Dragu said after the public discussion of the draft budget.

Last week, Finance Minister  announced that the 2016 draft budget is based on ESA deficit is 2.95 percent, an economic growth of 4.1 percent of the GDP and a nominal gross domestic product of RON 746.6 billion.

According to her, next year’s ESA deficit is estimated at 2.95 percent of the GDP, which corresponds to a cash deficit of 2.8 percent of the GDP and a structural deficit of 2.73 percent of the GDP.

Dragu said the budget starts from an estimate of revenue for next year, so as to be a nominal increase in revenues by 1.6 percent, adding that the general consolidated budget revenue projection was based on macroeconomic indicators calculated by the Romania’s National Commission for Economic Forecasting (CNP).

“In estimating costs, there were taken into consideration the measures adopted by the Parliament and the Government in 2015 for next year, and have the effect of increasing spending by RON 13 billion,” the Minister of Finance noted.

Regarding the main expenditure categories of next year’s consolidated budget, Dragu showed that the investments record an increase reaching to 5.1 percent of GDP, compared to an estimated 4.7 percent of the GDP in 2015. The social security costs are approximately constant, and staff spending will grow from 7.3 percent to 7.7 percent of GDP as a result of the many wage increases that have occurred lately.

According to Dragu, the healthcare spending will have an increase of RON 3.1 billion with the Ministry of Health and the National Health Insurance Office, a 9.6 percent increase in education spending compared to 2015, as well as a significant increase on the research and development sector by 23 percent.

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