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Government adopts 2009 budget and anti-crisis plan

de Radu Rizea     HotNews.ro
Joi, 5 februarie 2009, 19:10 English | Top News

The Romanian Government approved on Thursday the 2009 state budget and may also approve the main anti-crisis measures, agreed upon with labor unions and employers' associations. The budget draft will be sent to the Parliament on Friday. A preliminary version was adopted last Thursday, but the first version suffered several modifications after negotiations with unions and employers.

PM Emil Boc's statements, after the budget adoption:

- We included several suggestions made by our social partners;

- The state budget and social insurance budget will be sent to the Parliament on Friday;

- We reached a final form for the anti-crisis measures, which was included in the same draft;

- We will focus on European funds absorption;

- Low income persons are a priority in social protection;

- The minimum pensions will grow to 350 RON (some 80 Euros);

- The budget focuses on creating and maintaining jobs;

- In 2009, unemployment will be paid for three month more than usual;

- For the budgetary segment, a unique income law will be discussed and put up until April 15. All wage raises will come after April 15, when we know the financial results of the first quarter;

- For 2009, the Government suggests freezing the wages for all dignitaries.

Then anti-crisis plan, in brief:

- 20% of the budget will go to massive investments in infrastructure;
- The Government's debt is a priority. Without paying the remaining debt, the economy is blocked;
- The re-invested profit will not be subject to taxes, starting in 2010. The impact of this decision will be 3.44 BN RON, representing 0.59 of the GDP;
- Compensating VAT returns with VAT to be paid will be possible;
- CEC and Exim Bank will be capitalized;
- There will be a fund to help small and medium enterprises;
- The "Wrecks" program (buying back old cars in exchange for incentives when buying a new car) will continue and will grow;
- The general budget will include the income of state agencies and institutions;
- The minimum pension will be 350 RON, growing in two steps - on May 1 and October 1;
- The retired persons will have the medication compensated by 90% for those with pensions under 600 RON, necessary funds will be gathered from the tax on vice;
- For the temporary unemployment under 3 months, the social contributions are not paid.
- Compensating VAT to be paid with due VAT;
- Including the income of governmental institutions and agencies in the consolidated state budget.
























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