2022 budget law promulgated. Constitutional Court rejects USR’s constitutional challenge

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President Klaus Iohannis has promulgated the 2022 state budget law on Tuesday after the Romanian Constitutional Court (CCR) rejected, on the same day, the notification of unconstitutionality submitted by USR on the draft Budget Law and thus the normative act goes to the president Klaus Iohannis for promulgation.

CCR rejected, as unfounded, the objection of unconstitutionality and found that the provisions of art. of Law no. 334/2006 on financing the activity of political parties and electoral campaigns.

Last Friday USR filed a complaint against the unconstitutionality of the 2022 State Budget Law. The USR lawmakers argued that the constitutional provisions on equality before the law had been violated in the state budget bill, by “not allotting financial resources proportional with the needs of the district 1 in Bucharest, without applying the mechanism and the algorithm of allocation provided by the Law 273/2006 on local public finances). USR also considered  that the state budget submitted by the PSD-PNL-UDMR coalition violated the right to education, by not allotting the necessary money for the pupils’ local and county transportation to school.

According to USR, the principles of legality were also violated (“by adopting an amendment without any motivation and which benefits only the party of which the initiators belong, PPU-SL”), bicameralism (“by adopting in the joint session an amendment that circumvents the Law No. 334/2006 on the financing of political parties, an organic law that can only be amended and supplemented separately, first by the Senate, the ‘Reflection Chamber’, and then by the Chamber of Deputies, the ‘Decision Chamber’) and the principle of quality law (“by the vague, imprecise and interpretable nature of many provisions”).

The draft state budget and the state social insurance budget for 2022 were adopted on December 23 in the plenary of the Parliament. The draft state budget law received 294 votes in favor and 120 against. The draft state social insurance budget had 291 votes in favor and 119 against.

The 2022 budget was built on a cash budget deficit target estimated at 5.8% of GDP and ESA deficit estimated at 6.2% of GDP. The proposed government debt ceiling, according to EU methodology, is 49.8% of gross domestic product. This ceiling is mandatory for 2022.

The government expected economic growth of 4.6% and average inflation of 6.5%.

The budget provides financial resources to increase pensions, the minimum wage and allowances.

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