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Romanian Govt Postpones Decision On Cutting Budget Expenses

Romania’s Executive on Wednesday postponed making a decision on a draft ordinance aimed at cutting expenses in the public sector, by temporarily blocking new hiring or banning public institutions from purchasing cars and furniture.
Romanian Govt Postpones Decision On Cutting Budget Expenses
05 mart. 2008, 18:35, English
Under the draft ordinance, the government is to ban public institutions from purchasing cars, buildings, home appliances or air conditioning devices this year. In addition, the government also plans to avoid hiring new staff, unless absolutely necessary.
 
New hiring will only be allowed with the approval of the ministries of labor and economy.
 
The move will allow the Romanian authorities to cut budget expenses by 1.85 billion lei (EUR1-RON3.7197), government sources said.
 
However, the measures will also trigger lower revenues to the state consolidated budget.