Emergency Ordinance: Ciolos Government makes room for the future government’s budget

de Adrian N Ionescu | 19.12.2016 .

palatul-victoria-300x187The Government approved on Thursday an Emergency Ordinance to postpone some measures that would have entered into force on 01 January 2017 and had a significant budgetary impact for the deficit.

Some measures have been delayed only for two months (leaving the decision of their application to the future government) – such as the provisions from the Law on the unitary pay of state employees (because the consolidated budget would have otherwise increased by 49.1 billion lei – representing 6.08% of the GDP forecasted for 2017). Others refer to postponing the elimination of some taxes and surtaxes (such as taxes on energy) or even the 6% of GDP allocation to Education and 1% to Research.

They have been postponing some of these measures from one year to another for years.

“It remains for the future government to decide what happens next with them,” said Minister Anca Dragu.

In 2017, says the Ordinance, the remuneration of the state employees is maintained at the same level as in December 2016, which includes all salary increases approved this year and become applicable following their publication in the Official Gazette.

What measures will be postponed in the period 1 January-28 February 2017:

  • not granting prizes, meal vouchers, gift vouchers, holiday vouchers, allowances payable on retirement or disbandment
  • maintaining at the level granted in December 2016 of the allowances of certain categories of people (academics, revolutionaries, artists, persons persecuted for political and ethnic reasons)
  • overtime worked to be compensated with time off only
  • reimbursement of just 3 round trips or 6 one way trips for magistrates and revolutionaries
  • maintaining the basis for calculating the meeting allowances payable to local councillors during the period 1 January – 28 February 2017

Elimination of the surcharge on energy – delayed until 2018. Other measures:

  • Postponement until December 31, 2017 of the deadline from art. 6 of Government Ordinance 5/2013 regarding the introduction of special tax measures on the activities of natural monopolies from the energy and natural gas fields, as amended and supplemented, the deadline from art. 6 of Government Ordinance 6/2013 on the introduction of special tax measures on the exploitation of natural resources, other than natural gas, and the deadline from art. 7 of Government Ordinance 7/2013 on the introduction of tax on additional revenues obtained as a result of the natural gas price deregulation, as amended and supplemented. Not postponing these deadlines would cause a decrease of the budget revenues in 2017 to 974.5 million lei.
  • Orders become enforceable in 2017, for the purposes of both granting certain salary rights to the state employees and the legal interest related to these rights, to be enforced following a similar procedure applied for the titles become enforceable in the previous years, namely by instalments, over a period of 5 years.
  • Maintaining contribution to the pension Pillar II at the level of 2016
  • Keeping the same maximum number of jobs that can be assigned to the administrative-territorial units / sub-units as in 2014
  • Postponing until 1 March 2017 the provisions of the National Education Law 1/2011 for allocating 6% of GDP to education and 1% of GDP to research
  • It is regulated the possibility to carry over the unused amounts from the 2016 budget of the Ministry of Energy, aimed at closing two uncompetitive coal mines of Complexul Energetic Hunedoara. By Emergency Ordinance 86/2016 for revising the 2016 state budget, the amount approved for this purpose is 200 million lei.
  • The amounts allocated in 2016 to the local budgets of the administrative-territorial units from the intervention fund that is at the disposal of the Government, remained unused at the end of the budget year, are carried over to the 2017 budget, to be used with the same aim. Without this regulation, the amounts unused by 31 December this year should have returned to the state budget.

Publicat la data de 19.12.2016 .

Lasa un comentariu


SIMILAR ARTICLES

Adrian N Ionescu

Eurostat: Romania had second highest budget deficit in EU in Q1 /2017. Reaction of Finance Ministry

Romania's seasonally adjusted budget deficit was 32% of GDP in the first quarter of 2017 It was the second highest budget deficit in the European Union (seasonally adjusted), after France, with 33%, the next being Poland with -15% of GDP, according to Eurostat, published on Thursday At the same time, Romania registered the largest increase in the deficit compared to the last quarter of 2016, ...
Read more »

Adrian N Ionescu

Government borrows one billion euros to co-finance large infrastructure projects

The Ministry of Finance (MFP) has contracted a loan of one billion euros with the European Investment Bank (EIB) to cover the state budget contribution, for co-financing the priority projects in the transportation field, under the 2014-2020 Large Infrastructure Operational Programme (POIM) The Government could reallocate to other targets the amounts already budgeted for co-financing projects ...
Read more »

Victor Bratu

A set of measures proposed by AOAR to Government to improve business environment in Romania

After a period when all major business organizations - Romanian and foreign - have rejected the tax experiments especially those proposed by the Mihai Tudose government, AOAR moves further "from the reactive attitude in recent months to a proactive one" and sends to the Government suggestions for action wanted by the business environment Starting from a set of solutions presented on Thursday, ...
Read more »

Adrian N Ionescu

BNR: Romanian public administrations have financial commitments amounting to 45% of GDP

The share of financial commitments by public administrations remained, between 2015 and Q1 2017, at the same level of 452% of GDP, according to the most recent report on the administrations’ financial accounts issued by the National Bank of Romania (BNR) For comparison, the non-government credit balance amounted to less than 275% of GDP on May 31, 2017, while the public debt is about 40% of ...
Read more »

Adrian N Ionescu

National Centre of Financial Information, which will gather tax databases, is established

The National Centre of Financial Information "will be established by 1 September 2017 within the central office of the Ministry of Public Finance, by merging all the structures in the ministry and the subordinated institutions with responsibilities in the IT&C field (structures of MFP, ANAF – central office and regional directions, the National Agency for Public Procurement and the National ...
Read more »

MAINS

Prime Minister Grindeanu about 2017 budget: 5.2% economic growth, 815 billion lei GDP, 253 billion revenues

Prime Minister Sorin Grindeanu said on Sunday evening on Romania TV that the budget deficit in 2017 will fall within the set target of 3%, ... Read more

Back to the lesson of 2008-2014! Essential viewpoints about the type of growth we choose

The National Institute of Statistics announced the final value of GDP for 2014 at 668,143.6 million lei, in current prices, representing a growth rate of ... Read more

Trade deficit in 2016 is close to 10 billion euros, driven by imports of chemicals, fuel and food

The trade deficit in the first eight months of this year was EUR 6,133.8 million, about 28% higher than the same period of the last ... Read more

”Digital-Schweitzer” Romania: IT specialists explain why citizen is stuck between super computerized institutions

Ciolos government promised a revolution in reducing state bureaucracy, official emphasis being put on digitization and electronic communication, institutions being required to be transparent. This ... Read more