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FinMin Eugen Teodorovici: the latest budget revision bill secures the full payment of public wages, pensions and investment projects

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"The Gross Domestic Product (GDP) has passed the 1-billion-leu mark for the first time. Where the Government took some measures, results were seen. The government deficit of 2.76pct is not in danger, although we have heard some discussions lately. The budget deficit will be met under the budget revision bill. The budget revision secures the full payment of public wages, pensions and investment projects. No one has to worry about it, I mean the citizens (...) It will not be about cutting funds, but only to rectify certain oversized budgets, overestimations of ministries," said Finance Minister Eugen Teodorovici, after the government meeting that approved the first budget revision of 2019.

The revision was unveiled in a first reading at a government meeting on Thursday, August 8, 2019.

The Ministry of Public Finance (MFP) had proposed last week a positive revision that would ensure compliance with the 2.76pct budget deficit mark, with the largest cuts in appropriations expected to occur at the Ministry of National Education, the Ministry of European Funds and the Ministry of Research.

On the subject of the revision as initially proposed, the Fiscal Council recommended an increase in the transparency in the process of communicating the budget constructions by publishing and adopting as a benchmark the aggregate national budget, "instead of parts thereof."

Moreover, the Council warned that the budget deficit target pledged by Romania by the end of 2019 could be overshot and may fluctuate between 3.4pct - 3.7pct of GDP, "unless some credible additional compensatory measures are adopted."



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