Radio România Internațional

Tag: budget allocations

  • Parliament to vote 2025 budget

    Parliament to vote 2025 budget

    The government has approved Romania’s draft budget for 2025, built on an economic growth rate of 2.5%, an average inflation rate of 4.4% and a deficit of 7% of GDP. Finance Minister Tánczos Barna argues the budget is moderate and balanced, based on a cautious forecast, which focuses on investments with record allocations of some 30 billion EUR. The budget provides enough money for salaries, pensions and social benefits, the Romanian official gave assurances, although these will all remain at the level of 2024, after the government had already frozen, in early January, all public sector salaries by government decree. In turn, pensions will no longer be increased in line with the evolution of the inflation rate. Similarly, the government has announced the restructuring of central public institutions and state-owned companies, which are expected to cut their expenses, but also provide quality services.

     

    It is essential that the budget balance be maintained over the next seven years, until the deficit is lowered to 3%, in order to be able to manage the structural vulnerabilities of the national economy, Minister Tánczos Barna also said. The Ministry of Transport will receive additional money to continue the infrastructure projects that have already started, in addition to the Ministries of Energy, Labor, Education, Health and European Funds. 2.5% of the GDP has been allotted to the modernization of military equipment. The budget of intelligence services will be higher this year, with the largest increase allotted to the Special Telecommunications Service, for the modernization of IT infrastructure and the organization of the presidential and local partial elections. On the other hand, Parliament, the presidency, as well as the Ministries of Agriculture, Development and Culture will see their budgets slashed.

     

    Regarding public debt, Finance Minister Tánczos Barna explained that it is on a downward slope, but the effects of previous loans will be visible for a long time in interest expenses. Romania should produce more and borrow less, Minister Barna argued. Amid protests staged by key categories of employees disgruntled with the authorities’ plan to cap their revenues, and also considering the European Commission’s request that Romania reduce its deficit, the 2025 budget bill was submitted to Parliament and is expected to be debated this week, in an emergency procedure, at the start of the parliamentary session. The debate and the vote are expected to unfold without a hitch against the backdrop of a mobilization of MPs of ruling coalition parties, which at any rate hold the majority. (VP)

  • The 2018 budget under Parliament debate

    The 2018 budget under Parliament debate

    Debates on the 2018 state budget and social security bill have reached the final stage, and Romanian MPs are supposed to endorse it on December 21st at the latest. The bill reached parliament last week, and since then parliamentarians have had the opportunity to propose amendments, which have been centralized by chief authorizing officers and are to be discussed in the specialized committees.



    Thousands of amendments have been proposed since the bill reached parliament, including the allocation of resources to continue the works on the Bucharest ring-road, consolidating the buildings at risk of being destroyed by earthquakes, carrying on works on the metro, programs and actions for the Diaspora and the building of schools and kindergartens. Based on an estimated 5.5% economic growth rate, the 2018 budget includes more funds for the fields that need support. According to Prime Minister Mihai Tudose, health, education and infrastructure are next years priorities:



    “The new budget provides for a 17% increase in funds for healthcare, 16% for education and 42% more money for investments, as compared to 2017.



    According to the bill approved last week by the Government, agriculture is another field that will benefit from more money. According to the main party in the ruling coalition, the Social Democratic Party, next years budget is fairer and more balanced. The Social Democrats say that the situation might be even better than estimated, because hopes are that economic growth in 2018 will exceed expectations. The opposition, however, sees things differently. Deputy Eugen Tomac, member of the Peoples Movement Party has stated that implementing this budget will be a very big challenge for the governing coalition:



    “Their calculations are wrong. And they are wrong because there are already hundreds of municipalities across the country that do not have money for salaries.



    According to the opposition, the focus should be on channeling resources towards development. According to the bill approved by the government, personnel expenses will go up by 11.6 billion lei (some €2.5 billion) as compared to this year, following the implementation of the new salary law. Also, investment expenses will increase by 13 billion lei (some €2.8 billion). The final form of the budget will be decided in a plenary session of parliament, and debates are to start on December 18th. (Translated by M. Ignatescu)

  • The USA and its NATO partners

    The USA and its NATO partners

    Initially perceived as suspiciously lenient to Moscow and excessively critical of Brussels, US President Donald Trump has assigned to his staff the mission to correct this public perception. Last week, the new US Defense Secretary, James Mattis met with his NATO counterparts in Brussels, warning that if it wants to resume its cooperation with the United States and NATO, Russia must abide by international norms. He made it clear, “we are not in a position right now to collaborate on the military level, but our political leaders will engage and try to find common ground”.



    On the other hand, Mattis also warned that “the US could “moderate” its commitment to NATO if other member states fail to meet the requisite spending targets”. On Monday, also in Brussels, the new US Vice-President, Mike Pence said that the new administration in Washington pursued the preservation of Western values and supported the unity of Europe. It was the first visit that Mike Pence paid abroad and the president of the European Commission, Jean-Claude Juncker has hailed this symbolic gesture.



    The president of the European Council, Donald Tusk said that the meeting with the US Vice-President had been “truly needed”. According to Radio Romania’s correspondent in Brussels, Mike Pence told the press that he spoke on behalf of president Trump. “Whatever our differences, our two continents share the same heritage, the same values and above all the same purpose, to promote peace and prosperity through freedom, democracy and the rule of law, and to those objectives we will remain committed.”



    Mike Pence also reiterated the importance of trans-Atlantic trade and the US commitment to ongoing cooperation. A priority of both sides is fighting terrorism as well as the defense of the EU states’ territorial integrity — was the message reiterated by Pence after meeting with NATO Secretary General Jens Stoltenberg. “In the wake of Russian efforts to redraw international efforts by force, we will support efforts in Poland and the Baltic states through NATO’s enhanced forward presence initiative” — Mike Pence said.



    He warned again that the American people could lose patience with NATO members if they did not share the burden of defense, which was a viewpoint also shared by Stoltenberg. “Europeans cannot ask the US to commit to Europes defense if they are not willing to commit more themselves” — NATO secretary general, Jens Stoltenberg said. He called again on all member states to honour their military spending pledges, in terms of achieving the 2% defense spending target. We recall that Jens Stoltenberg congratulated Romania for its effort to allot 2% of the country’s GDP to defense. (Translated by A.M. Palcu)