Finance Minister: No Cuts For Local Administration In 2019 Budget

“We have to hold a reasonable discussion here. We have four structures in Romania. As a resident of Bucharest, I can’t ignore the fact that, of the entire income tax revenue of RON22 billion, 39% goes to Bucharest. The Government must hold talks with all four structures,” the Finance Minister said in a press conference on Friday afternoon.

The minister pointed out that the project included a cap of minimum RON2 million for communes.

“I am convinced that communal mayors, when they have a minimum of RON2 million per commune, can’t be discontent. Think of the fact that there is no communal hall with a budget under RON2 million. As for city and municipality halls… the needs are great at every level, but we cannot just hand money in one direction and leave two thirds without funding,” Teodorovici said when asked if the project reflects the talks held with discontent municipality mayors.

Romania's government on Friday adopted the 2019 state budget, built on an economic growth projection of 5.5%, which critics said is overly optimistic, and targeting a deficit of 2.55% of gross domestic product.

Finance minister Eugen Teodorivici said the gross domestic product is estimated at RON1.022 billion.

Consolidated budget revenues are projected at RON341.4 billion, or 33.4% of GDP, and expenses are seen at RON367.5 billion, or 35.9% of GDP.

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