The Deva City Hall, in western Romania, will fire around 150 employees after its salary fund almost doubled in a year because of new hires and salary increases.

Florin Oancea, the Deva mayor, said the staff cuts could start in February, Mediafax reported. The Deva City Hall employs 843 people. Of these, 665 receive their salaries from the local budget, and 178 from the state budget.

“For a salary fund of almost EUR 10 million I thought, as a mayor, that I cannot commit to paying in 2018 salaries from the taxes of the Deva residents,” the mayor said.

The City Hall’s salary fund in November 2017 was of RON 3.4 million (EUR 734,408), while in November 2016 it stood at RON 1.7 million (EUR 381,290). The Municipality plans to decrease the salary fund by over EUR 3 million and has started working on a new staff scheme, “much lighter than the current one,” the mayor said.

The city’s Local Police could also see staff cuts. The mayor said he would no longer allot a meals fund for 2018 as the salaries are “more than reasonable.” He also explained that the 112 people working for the Local Police are over the maximum 70 required by law. This stipulates that there needs to be one policeman for every 1,000 inhabitants.

Many local administrations in the country are faced with financial issues after salary increases and an income tax cut from 16% to 10%.

City halls in Romania see budgets shrink with planned fiscal changes

editor@romania-insider.com

(Photo: primariadeva.ro)