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Romanian PM Urges Parliament To Lower Its Budget Spending

Romanian Prime Minister Emil Boc urged the Chamber of Deputies and Senate Monday evening to lower spending in their budgets for this year, citing the need for "solidarity” in the context of financial difficulties.
Romanian PM Urges Parliament To Lower Its Budget Spending
03 feb. 2009, 10:29, English

"Social partners insisted and we absolutely agreed to launch a public appeal to the Chamber of Deputies and the Senate to show solidarity in the budgets they adopt for themselves and apply the financial restraints required this year," Boc said late Monday after talks with unions and employers on the 2009 state budget draft.

The Presidency and Parliament’s expenses on staff and goods and services will rise in 2009 by up to 76% compared to last year, exceeding by far the nominal gross domestic product growth of 12% this year.

Staff expenses of the Presidential Administration are set to increase 19.2%, to 13.6 million lei (EUR1=RON4.2987) from RON11.4 million in 2008, while spending on goods and services is estimated at RON28.9 million this year, up by more than 76% from the RON16.4 millions spent last year. The Presidency’s capital expenses will increase some 2%, to RON3.5 million, according to the 2009 budget draft.

For the Romanian Senate, staff spending this year will increase 30.4%, to RON87.2 million from RON66.8 million last year. Spending on goods and services will see a slight increase this year, to RON22.9 million from RON21.9 million in 2008. The Senate’s capital expenses are set to increase 13.6% this year, to RON10.2 million.

For the Chamber of Deputies, staff spending this year will increase 19.2%, reaching RON196.9 million, while spending on goods and services will increase 27.2%, to RON78.2 million. The Chamber’s capital expenses are seen 19.2% higher this year, at RON34.6 million.

Except for the Ministry of Education, where staff spending is set to increase 93.4% this year, to RON2.2 billion, expenses for other ministries and government institutions will see only slight increases or decreases compared to 2008.

Staff spending set in the 2009 state budget draft for ministries add up to RON17.56 billion, up just 5.5% compared to 2008.

Romania’s gross domestic product is estimated at RON579 billion this year, up 12% in nominal terms compared to the GDP estimated for 2008, of RON513 billion. Real GDP growth for 2009 is seen at 2.5%.