Romania’s government coalition of liberals and social democrats concluded discussions on measures to reduce budget expenditures, hoping to save over 5 billion lei (over €1 billion).

With revenue receipts in the first part of the year lower than the estimates, the Romanian government finds itself in the situation of resorting to more spending cuts in an attempt to maintain the budget deficit within its admitted limits.

Last month, Prime Minister Nicolae Ciucă said that the fiscal-budgetary decisions the government plans to take are not austerity measures but are aimed at better spending of budget money.

The two coalition parties agreed on a 10% reduction in spending on goods and services, with the exception of necessary purchases in health and education.

Procurement of vehicles, furniture, and office equipment will be restricted for ministers and other administrative agencies, except for those financed by EU funds. Additionally, there will be a freeze on hiring for state positions.

To comply with OECD guidelines and objectives cited in the national recovery plan, individuals will be restricted to serving on a maximum of two boards of directors.

The Finance Ministry will also define monthly spending limits for each ministry in line with their specific needs and priorities and the number of advisors in the offices of dignitaries will be reduced by 50%.

“These measures will bring significant savings to the budget so that there will be more money left for investments and for supporting the economy”, the social-democrat leader Marcel Ciolacu said.

(Cătălina Mihai | EURACTIV.ro)

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