All ministries have sent plans to cut budget spending, and the government has begun integrating those plans to prepare the decision-making process, executive spokesman Dan Carbonaru said Thursday.

“The next government meeting (most likely on Wednesday, April 19) will analyze the package of cuts proposed by Prime Minister Nicolae Chuke,” Dan told Carbonara.

According to HotNews.ro, the first stage will be an analysis of these cost-cutting plans, after which decisions will be made.

The reduction of budget expenditures was not discussed in the government a day ago, as requested by Chuke

Budget spending cuts were not discussed at the government meeting on Wednesday, April 12, as requested by Prime Minister Chuke, the explanation from government spokesman Dan Karbunara is that not all action plans from ministries were centralized. .

PSD ministers met on Wednesday in the office of Marcel Čolaku in the parliament to discuss, according to HotNews.ro sources, the fiscal measures that the government should define to cover the budget deficit. The meeting took place before the meeting of the Government scheduled for 14:00.

Marcel Čolaku asked PSD ministers to present a list of measures to cut budget costs, in the context of which he will take over as prime minister when he heads the government in June.

According to HotNews.ro sources, the Ministry of Finance will be cut 380 million lei, transport – 400 million lei, economy – 10 million lei, culture – 2 million lei.

The Ministry of Labor and the Ministry of Agrarian Policy did not publish the list of cuts in budget expenditures.

Also, the Social Democrats are considering the possibility of introducing a resolution that would contain a reduction in budget expenditures and a norm according to which the accumulation of pensions and salaries for state employees will be prohibited.

It is not yet clear what this provision will look like, but HotNews.ro’s sources say that a threshold will be set so that those with low pensions can also benefit from the state salary.

Secretary General of the Government Marian Neatsu (and Marcel Colaku’s confidant when it comes to executive matters), MEP Mihai Tudose, Finance Minister Adrian Cachiu, Transport Minister Sorin Grindianu, Labor Minister Marius Budai and Culture Minister attended the event. meeting Lucian Romashkanu.

Minister of Finance: the hole in the budget is not 20 billion lei / Kachu accuses of evasion

Finance Minister Adrian Cachiu announced a day ago in parliament that the measures considered by the Coalition to reduce costs are not a budget correction, but a resolution that includes fiscal and budgetary measures to ensure the economy of the state budget.

Kechiu wanted to clarify that in fact it is not about a “hole in the budget”, but about “a slowdown in the collection of revenues for the first quarter”.

The hole in the state budget is not 20 billion lei, the slowdown in revenue collection is 4.7 billion lei compared to schedule, Adrian Kachu, the finance minister, told the government’s Time.

Chuke rules out salary cuts for state employees: “Let’s not incite completely groundless panic”

Prime Minister Nicolae Chuke said Monday in Fokshan that he had asked ministers to present him with a decision to cut budget spending by Wednesday, April 12, but ruled out cuts in public sector salaries or investments.

• “We discussed and asked at the press conference after the meeting of the Politburo, and now I am asking everyone who delivers information and asks questions to representatives of the authorities, so that we do not incite completely unfounded panic among the population.
• Each of these options is discussed during the consideration of the state budget and, of course, each of them can be an analysis, but I gave the task in the government that each option be discussed, not about salaries and about investments. .”, Prime Minister Nikolae Chuke said on Monday.

The Prime Minister stated that the Government is not considering new tax increases in the next period, but rather better tax collection.

The Prime Minister’s statements came after the Liberal Minister of Investments and European Funds, Marcel Bolosh, said for the first time on Saturday on Antena 3 that in order to balance the budget and fulfill the tasks adopted through the PNRR, the government could revise the salaries of public servants or even reduce them number.

The government has started to cut spending by 20 billion lei, which was confirmed by Finance Minister Adrian Cachiu after revealing that they made a mistake in the 2023 budget, as HotNews.ro also revealed.

Bolosh says that the latest statements that they have to cut costs by 20 billion lei will easily lead to these reforms that the Commission is demanding.

Income growth has slowed / High risks for Romania

If in previous years we had a greater growth in tax collections (inflation played an important role last year – it helped the state a lot), then this year this phenomenon subsided.

The increase in collected taxes is 22.3 percentage points lower than the increase recorded as a ratio of activity for the first two months of 2022 and 2021.

In terms of amounts, there was a decrease in the growth rate of revenues from 11.688 billion lei (difference 2022 compared to 2021) to 4.822 billion lei (difference 2023 compared to 2022), thus 6.866 billion lei lower.

The difference is almost entirely observed in the 10 largest types of economic activity as a share of total receipts exclusively from economic activity.

Romania’s exchange rate risks are also particularly high as we face twin deficits: a current account deficit and a budget deficit.

• The Ionescu family and the 20 billion hole in the budget