The budgetary impact of the new public wage law – underestimated: RON 60bn until 2022 – Fiscal Council chairman says

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The Fiscal Council chairman Ionut Dumitru says the budgetary impact of the public wage law is much underestimated. Dumitru claims the impact will reach 2% of GDP in 2018 (approx. RON 25 billion) and that until 2022 the impact would reach RON 55-60 billion, hotnews.ro informs.

“We agree a unitary wage law is needed. Our main concern is the budgetary impact. Let me be clear: wage increases by ordinances are just illusion. The standard of living cannot be improved by a discretionary decision. One may get wage increases only based on economic performance or due to productivity increase,” Ionut Dumitru says.

PSD has made public the draft law on unitary public wage and the draft is to reach parliament in 7-10 days, according to the announcement made on Monday by social-democrat leader Liviu Dragnea and by labour Minister Lia Olguta Vasilescu.

Former Finance Minister Ioana Petrescu says the wisest decision from the government would be, first of all, to make decisions on fighting tax evasion and on the increase of revenues. Structural measures are needed in order to speed up the economic growth.

The Social Democrat Chairman Liviu Dragnea announced on Monday that the draft wage law would not be tabled in Parliament yet, arguing it has to be put on hold for one more week “to be released in the media so that people should pass an opinion on it”.

According to the new salary grid, the highest pay will go to the country’s president, RON 17,400 (gross income) per month, followed by the two speakers of the Parliament (RON 16,675), prime minister (RON 16,675) and Ombudsman (RON 15,225).

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