The elections are coming! Romania puts budgetary austerity on hold

The government quickly decided to abandon part of the budgetary austerity measures, given that they should have been adopted by June 30, but also in a political context related to four rounds of elections in 2024.

Some of the austerity measures were eliminated on the eve of the elections PHOTO gov.ro

In the middle of last week, the Ministry of Finance announced in public transparency an “ordinance-train”, i.e. the modification of a large number of normative acts. Through the new ordinance, including the budgetary austerity measures, they are either softened or abandoned, although the Government had already postponed their implementation for six months since December. After the last Executive meeting, the Government already announced that the new ordinance was also adopted.

Administratively, in the case of budgetary measures, the Coalition looked, as well as the last decisions related to those employed by the state, especially to local staff. First of all, there will be no more reorganizations within local public institutions. More precisely, a break is taken from the reorganizations for public services of local or county interest, with legal personality, established and organized under local or county councils. Likewise for local companies, established by municipalities or CJs. Practically, there will be no merger of institutions, one of the problems reported by the local administration in the last six months. Also, the local services regarding the registration of people (important structures especially in the context of the 2024 elections), the Salvamont services or those that have lifeguards and are financed from public money will not be reorganized.

Through memoranda, submitted by the coordinating ministries and with the approval of the Ministry of Finance, some central institutions can request exemption from the application of some budgetary austerity measures. And in the case of these, an exemption from the 25% reduction in the number of dignitaries can be requested or that vacant public positions not be abolished. Through the Ministry of Development, the request regarding the non-abolition of vacant positions can also be requested by local administration institutions.

Some of the bosses breathe a sigh of relief

Another provision will allow increasing the number of those with management positions. Although the Government wanted their number to be reduced from 12% to 8%, following the reorganizations, now, the same Executive says that each institution can request to have a maximum of 10% management positions from the entire staff.

The Government also decided to increase the number of merit allowances from 1,650 people per year to 1,720 people. These merit allowances are a reward for “well-known activities in the field of culture, science and sport”. A merit allowance represents three minimum gross salaries in payment, which means that it reaches 9,900 lei, being non-taxable.

The extra functions start again

Step by step, the institutions begin to move with new demands on the new staff. Last week, the government team passed a normative act through which a new position of secretary of state was established at the Ministry of Finance, responsible for the field of digitization at the level of the institution. The paradox is that three weeks ago, with the decision published in the Official Gazette on February 18, the Ministry of Finance reduced the number of state secretaries from 8 to 6. So, in less than a month, the institution realized that it still needs an official who has a gross salary of 16,640 lei. And the number of posts in the ministry is increased from 2,052 to 2,077 posts.

At the last Government meeting, the Executive also passed a Government Decision for the organization and operation of the MAE. And the new provision was the one through which the Foreign Service of the MFA is supplemented with 69 positions, “to cover the consular and technical-administrative staff required for the General Consulates of Romania in Salzburg, Valencia, Frankfurt, Hamburg, Birmingham, Nantes and for the Consular Offices in Belfast, Cagliari and Santa Cruz de Tenerife, as well as the necessary technical-administrative staff for the General Consulates of Romania in London, Chisinau, Madrid, Rome and Paris”, according to the explanatory memorandum of the GD.

Also, within ANAF, a new leadership position, vice-president, has appeared, which will have the corresponding salary of a state secretary. Therefore, ANAF will be headed by a president and three vice-presidents.