Measures to ensure the public spending sustainability

06 December

Government has approved on today’s meeting a series of fiscal –budgetary measures whose enforcement ensures the public spending sustainability and maintain in 2018 the budget deficit target below 3 percent from GDP, in line with European regulations (Maastricht Treaty).

Morever, enforcement of these fiscal- budgetary measures ensures a sustainable level to implement salary increases in public sector, according to unitary pay law, pensions and other social rights, as well as implementation of the reforms laid out in the Programme for Government 2017 -2020, through streamlining public expenditure, namely through cap on goods and services spending.

Measures for local public authorities, such as:

To ensure the amounts necessary for child protection system, public centres for disabled people and public hostels for elderly to be operational, local public authorities can allocate sums from their own revenues and from amounts phased from the added value tax for balancing local budgets in addition to cost standards level. At the same time, the local public administration authorities may use in 2017 the local budget surplus to cover these expenses.

In order to provide the necessary funds for the supply of thermal energy in the cold season 2017-2018, the local public administration authorities can use the surplus of the previous years. The measure is necessary to provide heat for the population, schools, kindergartens, hospitals and other public institutions.

Ensuring public spending sustainability

As in previous years, in 2018 too, some measures to curb public spending will further be enforced. The Emergency Ordinance approved today includes measures regarding curb on cars, furniture, office equipment purchase, taking into account the need to use budgetary resources as efficiently as possible, as well as the need to allocate investment funds for the pursuit of investment objectives.

According to the legislative act, in 2018, the  authorising officers of the public institutions and public authorities have the obligation to reduce by 10% the goods and services expenditure related to the maintenance and functioning of the institution. Some exceptions are provided, for example, the measure does not apply to actions and activities specific to the preparedness and exercise of the Romanian Presidency of the Council of the European Union.

Overtime will be compensated only with spare time. The rights provided by the legislation in force in June 2017 are granted by way of exception, for the activity conducted by military personnel, police officers, civil servants with special status in the penitentiary administration system and civilian personnel in public defense institutions, public order and national security, on weekly rest, public holidays and on other days which, according to the regulations in force, are days off.

The level of allowances granted to war veterans and war widows, persons persecuted for ethnical and political reasons and other categories of persons as well as those granted to members of an academy or survivors, is kept at the level of December 2017.

Other measure sets the suspension of vacant or temporary vacant job occupation in public institutions and authorities by contest or exam from January 1, 2018 until  December 31, 2018. The authorizing officers may approve the occupation of a maximum of 50% of the total number of posts which will become vacant after January 1, 2018, only under the conditions of meeting the staff expenditure conditions approved by budget.

The five-year, phased payment procedure shall be maintained for the amounts provided for in the enforceable titles for the granting of entitlements obtained by state sector  personnel between January 1  -December 31, 2018.

Prolongation until December 31, 2018 including, of the deadlines provided for in:

art. 361 (paragraph 3, letters e and g) and art. 27 (paragraph 6) of the National Education Law no. 1/2011, according to which 6% of GDP is allocated for education and 1% of GDP for research.

art. 6 of the Government Ordinance no. 5/2013 on establishing special measures for the taxation of natural monopoly activities in the electrical power and natural gas sectors.

art. 6 of the Government Ordinance no. 6/2013 on establishing special measures for taxation of the exploitation of natural resources, other than natural gas, approved with amendments and completions by Law no. 261/2013

art. 7 of the Government Ordinance no. 7/2013 on introducing tax on the extra income following the deregulation of prices in the natural gas sector.


Capping the fine point


One of the measures included in the emergency ordinance approved today aims at establishing a fix value of the civil penalty for  public roads contraventions. Thus, for January 1 - December 31, 2018, the fine is capped at 145 lei, as it is today, without increasing according to the gross minimum salary in the guaranteed economy. According to GEO no. 195/2002 regarding the circulation on public roads, the civil penalties shall be set in the amount determined by the value of the number of fine points applied.

The Emergency Ordinance approved by the Executive on today's meeting amends and completes some legislative acts, including: the Law on Cadastre and Real Estate Advertising no. 7/1996, Government Emergency Ordinance no. 146/2002 on the formation and use of the resources used by the state treasury, Government Emergency Ordinance no. 88/2013 regarding the adoption of fiscal-budgetary measures for the fulfillment of commitments agreed with the international bodies, as well as for the modification and completion of some normative acts, passed with amendments, by Law no. 25/2014.



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