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Emergency measures to control deficit: Minister of Finance blocked recruitment for budget institutions and halted promotions
de Victor Bratu 9.3.2017
Minister Viorel Stefan (foto) urged to keep the deficit under control.
In the midst of the discussion about the increased salaries, government officials turn off the tap on funding. The Ministry of Finance officially announced Tuesday that it blocked the recruitment process for the vacancies in the budgetary institutions and temporarily stopped promotions which would lead to paying higher wages.
“The measure has been adopted to be in line with the personnel expenses approved by the 2017 budget in the context of budget drafting, in line with the deficit target and the allocation of 2% of GDP for defence, to comply with Romania’s commitment to the North-Atlantic partners (… ) The measure will take effect until the budgetary allocations for personnel expenses will be supplemented for the budget of the ministry to allow new employment or promotions in rank and position“, mentions the release of the Ministry of Finance.The news has been broadcasted in advance, exclusively, by Digi24.
According to a document obtained by Digi24: “Filling all vacant or temporarily vacant positions stops and promotions in rank and position that would result in paying higher wages to employees are suspended.”
The Ministry of Finance has nearly two billion lei allocated in the budget law for salaries in 2017, 6.5% less than last year.
This is not the first austerity measure applied by the Ministry of Finance: as of 1 March, the supplement pay for stress for the employees from the Anti-Fraud Directorate decreased from 25% to 5% of the gross salary. The decision has been taken because the ANAF budget has decreased compared to the last year.
According to a release issued Monday, ANAF has collected in the first two months of this year 0.9% less money to the state budget compared to the same period of the last year. The explanation given by ANAF representatives was that VAT decreased to 19% on 1 January.
Over the last 5 days, the Government started to pressure the Ministry of Finance and ANAF to increase the revenue collection.
After the first two months of this year, the revenues are about 1% lower than the amount registered in the same period of the last year. Only 32 billion lei have been collected to the state coffer.
Prime Minister Grindeanu had a first meeting with the Minister Viorel Stefan and the head of ANAF and the official topic was an analysis of the budget revenue status.
After the meeting, Bogdan Nicolae Stan announced that convened all the heads of tax directorates to ANAF headquarters in Bucharest, for “organizing an emergency plan of action”, which is to be brought to the prime minister’s attention early next week.
Sorin Grindeanu called Friday on “increasing the revenue collection managed by ANAF and intensifying the measures for improving voluntary compliance.”
The 2017 budget has been adopted with a delay and local and European institutions announced their doubts about the way it has been shaped.
The Government has assured that it will comply with the maximum deficit target of 3% of GDP.
The PSD government program includes both wage and pension increases and tax cuts or removals, some of them already adopted.