2020 budget draft provides sums for increased salaries, pensions, but less money for certain ministries

Prime Minister Ludovic Orban said on Monday that the draft budget for next year provides the sums needed to increase pensions from September 1, according to the pension law, but also for pay rises, under the law of unitary pay.

PM told public broadcaster TVR 1 that a very serious review of the pension system will take place in 2020, meaning it will be compared with other pension systems, to see which are the best pension systems that work, to enable Government to draft a new valid pension law. Orban has slammed the former PSD ruling once again for increasing salaries and pensions for such a long period of time.

“Where else have you seen something like this? No one is increasing salaries in the public sector and foresees pension increase for four years. Based on what? Normally any growth must be analysed (…) When PSD came to power, in 2016, it was a well-known formula for pensioners, where the pension increased with the inflation rate and by 50pct of the increase in the nationwide average gross salary. Also, for those who were about to retire, the correction index was applied, which is calculated according to an established formula. Things were as predictable as possible. The PSD came and said – we increase pensions. How do we increase them? Well, like this, out of nowhere,” said the prime minister.

Higher budgets for some ministries

Transport Ministry will get RON 11.8 billion in 2020, 3.3% more than in 2019.

The budget of the Defence Ministry is up by 18% to RON 21.1 billion, while the Education Ministry will get 3.7% more money, namely 30.5 billion next year.

The Interior Ministry’s budget will also climb by 13.1% more up to RON 19.4 billion.

Less money for others

Other ministries will get less money. For instance, Health Ministry will receive 23% less than in 2019, RON 11.4 billion.

The Regional Development and Public Administration Ministry will also have a decreased budget in 2020, down by 45.5% to RON 5.5 billion.

Agriculture Ministry- less by 14.3% down to RON 18.3 bln. Economy Ministry will get less money by 11% -RON 1.12 bln.

Finance Ministry- less funds by 19%, RON 5.27 bln, while Foreign Affairs ministry will get 16.4% less money than in 2019, namely RON 1.02 bln.

CSAT endorsed budget for defence and security institutions

Romania’s Supreme Council of National Defence (CSAT) has Okayed on Tuesday, the budget proposals for 2020 for the national defence and security institutions: the Ministry of National Defence, the Ministry of Internal Affairs, the Romanian Intelligence Service, the Foreign Intelligence Service, the Special Telecommunications Service and the Protection and Guard Service.

The Ministry of National Defence also maintained the allocation of 2pct of GDP in 2020, a percentage agreed by the National Political Agreement on increasing the financing of Defence. The approved funds will allow the financing of the programs for the endowment of the Romanian Army.

The Foreign Intelligence Service- SIE- is the only intelligence institution to get less money- less by 3.15% than in 2019- RON 320.2 million.

The Protection and Guard Service- SPP- will get 19.5% more, RON 272.7 M

The Special Telecommunications Service- STS-6 pc more, RON 630.3 M, while the Romanian Intelligence Service- SRI- will get 10.8% more funds- RON 2.67 billion.