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Minister Voinea: We want performance-based budget planning for 2014

The Romanian authorities want to plan the 2014 budget based on performance criteria, with the size of the funding earmarked for certain sectors to be set by taking into account those sectors' meeting certain performance indicators, Minister-delegate for Budget Liviu Voinea told Romania TV news channel.

He explained performance-based ‘contracts' will be closed between the Finances Ministry and the relevant ministries, with such contracts to set a certain funding level on condition that the sectors meet a range of performance indicators to be jointly established and to be watched on a regular basis.

'I want us to introduce such practice starting the 2014 budget, which will be drawn up in this October. The increased funding to such sectors as education and healthcare risks not being seen if we fail to improve the manner that the money is spent', the minister underscored.

Voinea announced that next year's budget, largely speaking, will set 4 percent index-linking of the pensions and the indexation of the overall wage fund. He added that the authorities are currently working on several versions for distributing the increase in the overall wage fund. One of such versions consists in increasing all the public workers' wages by the inflation rate. Another is to raise the wages of certain public sector staff more and set no pay rise for other public workers. A third option is to give a higher pay rise to those public workers who earn up to a certain wage and apply no increase to those earning more than a certain set level.

'By the time we draw up the budget law, we'll take the decision regarding the best version to increase the wages', the minister explained.

 

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