In 2023, we did not have a budget correction in the literal sense of the word. Instead, we had an Ordinance (OG 90/2023) that serves the same purpose. We even call it a patch in disguise. In fact, distributions are made through the Government’s Reserve Fund, which by law should be used for urgent matters.

Money – lei banknotes Photo: Lupoianflaviu | Dreamstime.com

But over time, a little each year, this fund turned into something completely different. A kind of “bucket” from which different budgets are fed, because the state budget was poorly written. The worst in recent years was 2023: that’s why we also have the tax increase law (296/2023).

The first measures after this GEO appeared on Thursday in the official monitor:

  • The Ministry of Agriculture received 14.3 million lei, of which 7.8 million lei for wages.
  • Presidential Administration: 7.54 million lei for goods and services “to ensure the financing of services necessary for the fulfillment of the constitutional and legal duties of the President of Romania.”
  • General Secretariat of the Government for the National Sports Agency: 32 million lei in the section dedicated to “culture, recreation and religion”. The funds are aimed at financing the personnel expenses of subordinate institutions for October and November 2023.
  • General Secretariat of the Government for the National Administration of State Reserves and Special Issues: 10.5 million lei for the payment of salary rights and corresponding rights for the staff of the institution, rights arising from the execution of executive documents, as well as corresponding fiscal obligations.
  • Special Telecommunications Service (STS): 43.9 million lei for salaries.
  • TVR: 42.8 million lei (it is not clear what this amount is transferred to, but it is included in the “culture, recreation and religion” section).
  • Ministry of Research: 5.98 million lei, of which 5.97 million lei for salaries, the rest for financing disabled personnel, not counting.

According to the Fiscal Council, in Romania we have a “denial of reality”, we do not understand that a large-scale correction, even a gradual one (over several years), from more than 6.5% to 3% of GDP, means a reduction in income.

CF waited for the clarification of the budget and in September of this year requested data from the Ministry of Finance to develop its own opinion.

According to the institution, the order is actually a correction that leads to the restructuring of public spending.

Read also: The Fiscal Council justifies the fiscal measures taken by the government: In Romania we have a “denial of reality” / Public motivation GEO no. 90/2023 / Realistic budget designs are required

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