Budget rectification on July 31, Fin Min says RON 7bn needed. Progressive taxation of special pensions considered

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The budget rectification will take place on July 31, until then Finance Minister Eugen Todorovici must carry out an analysis regarding the measures to be made by year-end in order to meet the 3% budget deficit target, political sources say.

The date for budget rectification was decided during the PSD Executive Committee, Wednesday evening.

Sources said that “the Executive Committee sitting decided that, by July 31, Finance Minister Eugen Teodorovici to carry out an analysis on the budget and the measures needed to meet the 3% budget deficit target at the end of the year. The budget rectification is to be made on July 31.”

The cut of budget expenditures consider progressive taxation of the special pensions, other decisions to eliminate ineffective social programmes and the restructuring of state agencies.

Finance Minister Eugen Teodorovici announced Wednesday that the budget lacks RON 7 billion, the Government needs to find sources to cover the deficit, digi24.ro informs.

The sitting also decided on another Executive Committee next week to tackle the issue of government reshuffling, concerning ministers but also the state secretaries, given that the Prime Minister will present an assessment of each ministry. Sources quoted by realitatea.net say the targeted ministers are Interior Minister Carmen Dan, Education Minister Ecaterina Andronescu, Agriculture Minister Petre Daea and Transport Minister Razvan Cuc.

The sitting has also decided that the new PSD leadership – Viorica Dancila, Eugen Teodorovici and Mihai Fifor – is to visit every county branch to assess the results of the EP election.

Finance Minister Eugen Teodorovici said two days ago the budget deficit of 1.4% of GDP has been estimated early this year, suggesting on the other hand that the high number of employees with the ministries and state companies contribute to the deficit.

Teodorovici told Antena 3 TV private broadcaster Tuesday evening that there is money for pensions and wages, but the public expenditures need to be streamlined. He said the ministries are over dimensioned and “maybe their number is too high.”

The Finance Minister said he will propose restructuring along with the budget rectification, as there are decisions of good sense.

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