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Premier-designate Ludovic Orban said on Monday that, according to estimates, capping the pay of public office holders has saved the budget over 1.2 billion lei.
"As regards the capping of wages, we didn't cap just the pays for mayors and deputy mayors, but for all those who collect benefits for public dignity office: MPs, ministers, the President of Romania, me as Prime Minister. And the result are over 1,200,000,000 lei in budget savings, according to the estimates we made. Which is not a trifle," Orban told the meeting of the General Assembly of the Association of Communes of Romania.
He added that expenses such as "subsidies, wage increases in the public sector, increases of budget allocations without a very serious substantiation" need to be cut to allow the allocation of financial resources for investments.
"The budget is in an extremely serious situation. Expenses have been piling up for years, in absence of the necessary revenues to support them. Even now, after having a budget deficit of 4.6 percent in cash terms and 4 percent in ESA terms, Parliament - which has entered election campaign mode and imagines they'll get the people's vote only if they pass such laws - has bills appearing every week, which generate additional expenses and reduce revenues. The latest is the income tax break for journalists," Orban said.
He pointed out that there are currently no guarantees that child allowances are used in the children's interest and gave the example of Germany, where parents benefit from tax exemptions.
"I've said it right from the beginning: one cannot double the allowances twice in just one year. That's not possible. Once in March, at the budget debate, and then in December. If Parliament rejects the ordinance that moves back the term for the increase coming into force, my budgetary provisions are incapable of supporting these rises. (...) Because you asked me about child allowances, Germany, for instance, has a tax exemption depending on the number of children, so that there is a tax incentive for families with children. We on the other hand have no guarantee that all the money that goes into child allowances will be used for the benefit of the children," said Orban.
