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Crisis details: Mapping the state sectors announcing zero funds for salaries or current expenses

Miercuri, 8 iulie 2009, 21:12 English | Top News

Se termina banii?
Foto: HotNews.ro
Romanian Ministries of Health, Justice, Education and of Transports announce difficulties in paying hospitals staff, court staff, academic staff and national rail (CFR) staff their salaries. Hospitals in Bucharest and in the country say they will be able to afford salaries for august-September, though Health minister Ion Bazac said there funds to last for the entire year. Justice staff saw their 50% benefit cancelled, while several courts said they couldn't afford current expenses. Transport minister said the money for CFR staff is over and 40% of the Transport service staff had to face technical redundancy. Town halls accuse the Ministry of education for sending money in.

Health. Hospitals in Bucharest and all over the country announced they are on the verge of running out of money. The hospital's budget is supported by the House of health Insurances. Bucharest afford to pay its health staff until end of August. Hospital managers in Cluj (Central-West) lack money for paying some benefits and say they won't have money at all for the last part of the year. Hospitals in Gorj (South) say they can only afford to pay their staff by October. Ministry of Health assured health unions there are sufficient money to last by the end of 2009. It even announced allocating 10 million euros to buy 5 surgical robots, according to Gandul daily.

Justice. The lack of money lead partly to cuts in benefits, partly to certain institution and courts announcing they cannot afford paying current expenses. Magistrates in several pats of Bucharest refused to join the court, protesting against the Ministry’s decision to cut the 50% stress benefit. Minister of Justice Gheorghe Pogea is threatened to be sued by judges, who saw their benefits reduced. He argues that the lack of funds has been announced since February.

Education. During the last months, academic staff received delayed salaries. Some of them didn't receive any payslip at all. Town halls accuse the Ministry of Education for not sending the money for incomes in. Timisoara county (West) has been informed there will be 120 billion lei lacking from the academic incomes' local budget, half of the money meant to pay the county's professors and teachers. In Cluj, many teachers from the country side said they received only part of their incomes. Some towns borrowed money from the local councils to pay their teachers and have absolutely no clue where they will get the money from next month. Suceava (East) will afford to pay its academics by end of September.

Transports. The most affected segment id the transport railways. The sector sent 40% of its staff into technical redundancy because it lacked money for staff incomes. Transport minister Berceanu announced in June the money for CFR staff will be over in the second part of the year. July 1 saw railway staff going on strike. Berceanu says CFR staff wants an increase in pay.

Finance Minister: only Justice encounters problems

Finance minister Gheorghe Pogea says the situation is being revised daily. He added that there is sufficient money to pay Justice staff. On the other hand, Finance state secretary Gheorghe Gherghina told HotNews.ro that only the Justice department was in trouble. He said that the state budget doesn't par for health and CFR staff.

Pogea said the government will meet with IMF and European Commission representatives at the end of July, when Romania is expecting a budgetary rectification.























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