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Business people: the state budget for 2019 must rely on the freezing of salaries in the budgetary sector
The Association of Business People of Romania (AOAR) announced on Monday that the state budget for 2019 should rely on the freezing of the salaries in the budgetary sector as the aggressive increase of salaries in the central administration and local administration is one of the major causes for the attractiveness of the workplaces in this sector as compared to the private sector.
AOAR is concerned by the proposals referring to the state budget and the budget for social insurances for 2019 as they were not under public debate in October 2018.
The association warns that the lack of consistent reforms regarding the simplification and clarification of the administrative procedures but especially the lack of progress in complete digitalization in the relation between tax-payers and administration determines the existence of an inefficient bureaucratic apparatus.
Under these conditions, AOAR considers that the state budget for 2019 must rely on the freezing of the salaries in the budgetary sector, at least for the first 6 months of the year. The association considers that the possible salary increases must be operated in accordance with the real economic evolution, once budgetary adjustment is made.
AOAR requires that the presentation of the state budget be accompanied with a report which evaluates the effects of implementation in 2018 of the ‘split VAT’ measure and considers that the ministry of finances must be the guarantee of the stability of the fiscal system and the firm opponent to any proposal regarding the introduction of new taxes.
Moreover, AOAR expresses deep reserve for the perspective of the discussion and approval in the parliament of the state budget during the last period of December, procedure which reduces to zero the public debate for this document of such importance for the business environment.