It says that the minimum wage in the budgetary sector will increase from 5,500 to 6,300 lei, budgetary revenues will rise by 5.1 per cent against 2025, while the expenses will increase by 7 per cent. At the same time, 93% of them will be covered from the state’s general funds.
The expenditure item includes a “record” capital investment of 3 billion lei, which is 35.6% more than in 2025. The funds will be used to implement 85 projects on the development of road infrastructure, water supply and sewerage, energy and agriculture. Lei 9.89 billion is planned for health care, Lei 21.94 billion for education, and Lei 22.47 billion for social protection. The investments in electronic medical cards, innovative medicines, free meals for pupils and renovation of kindergartens are underlined. The commission’s chairman, Radu Marian, assured that the members of the commission will “closely monitor the degree of spending fulfillment”.
Meanwhile, a dispute over the procedure of adopting the budget and its main indicators is raging in the media. Economist Veaceslav Ionitsa assessed the fact that the government presented the draft before the IMF mission started its work as “blatant neglect”.
“The government’s program prescribes a growth that is based on EU aid of 1.9 billion euros (20% of GDP). However, the figures laid out in next year’s budget show a different story,” notes former prime minister MP Ion Kiku. – The planned state budget revenues are only 5% higher than in the current year. This is even less than the projected inflation. At the same time, expenditures have increased much more. We are not against the expenditures, many of them, I am sure, have a justification, but why does the revenue part in real terms remain at the level of 2025?”.
The former prime minister considers the growth to LE 2.20 billion of the fund of subventions in agriculture as positive. “But the fund has already accumulated a debt of an annualized amount. And if we have a record deficit of 21 billion lei, it means that we are taking loans for current budget expenditures.”
There is another argument – salaries. Next year, the basic minimum rate for mid-level budgetary employees will increase from 2200 lei to 2400 lei, i.e. by 9%. At the same time, the budget deficit is planned to grow by 15%. It turns out that neither investments nor salaries will be fully covered by these expenditures.
“Economists understand the long-term consequences of this trend. Look at France, Romania, Bulgaria. Budget deficits can be covered through better revenue administration. From January 1, 2025, excise rates on petroleum products, tobacco, alcohol have risen. This is a weighty item. In general, imports this year have increased by 18%, and accordingly, the taxable base has increased. But why did customs revenues grow only by 6%? If the structure of imports has changed or there are other reasons for the decrease in this indicator, we need to explain them.
Parliament recently passed a law that largely repeals the provisions of the legislation concerning state control. “Law 131 on state control was approved in accordance with the recommendations of the business community,” says Ion Kiku. – According to it, controlling bodies should keep a control register, and an inspector was not allowed to conduct surprise inspections. This law was practically destroyed. When I asked why a law was being adopted that contradicted the reform, which was also paid for with World Bank funds through a loan, I was told: “If we don’t adopt it and give additional powers to labor inspectors, we won’t get the 15 million euro loan until the New Year, i.e., we will lose the tranche”.
