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Law on 10% reduction of expenditure in public institutions - promulgated
President Klaus Iohannis promulgated on Friday the law approving GEO no. 27/2023 for amending and supplementing certain regulations in the energy sector, as well as for introducing certain derogations.
The act aims to introduce measures to help implement coherent mechanisms for maintaining the functionality of some industrial assets that provide centralised thermal energy supply, with beneficial effects on the population in terms of public services for centralised thermal energy supply and preparation of hot water for consumption.
Thus, a mechanism is established for the settlement of tax and budgetary obligations of certain economic operators owning electricity generating capacity or combined heat and power capacity connected to the National Electricity System, representing functional energy assets, with or without the mines providing the coal necessary for their operation, as well as industrial capacity representing functional industrial assets.
"By way of derogation from the provisions of Art. 1 para. (1) (e) and (f) of Government Ordinance No 64/2001 on the distribution of profits of national companies, national companies and companies with full or majority state capital, as well as autonomous companies, approved with amendments by Law No. 769/2001, as subsequently amended and supplemented, to national companies, national companies and companies with full or majority state capital that are implementing a restructuring plan notified and approved by European Commission Decision and that have received state aid for restructuring in the form of grants to finance certain expenses, the accounting profit remaining after deduction of income tax shall be allocated directly to other reserves and shall constitute its own source of financing during the period of its implementation," the law states.
The heads of public authorities and institutions, as defined in Law no. 500/2002, as subsequently amended and supplemented, regardless of the method of financing and subordination, are obliged to take the necessary measures to reduce by 10% the expenditure approved for the year 2023 under the heading "Goods and services", excluding the amounts not allocated in accordance with the provisions of Article 21 para. (5) of Law 500/2002, as amended and supplemented," the law stipulates.
The provisions do not apply to expenditure on medicines and medical supplies, medical services, expenditure on health actions and programmes, expenditure on support for the national programme "Timisoara - European Capital of Culture in 2023", in compliance with the specific legislative framework in force, and expenditure on pre-university and university education establishments.