Romanian government continues cost-cutting drive to tackle massive deficit

29 January 2025

Romanian officials recently announced new measures to cut public expenses, with decreased budgets for the Presidential Administration, Senate, Chamber of Deputies, alongside a series of staff restructuring initiatives. Cost-cutting activities began after the latest data showed that Romania’s budget deficit hit 8.6% in 2024.

Romanian minister of finance Tanczos Barna proposed a -10% cut in the expenses of the Presidential Administration, -5% for the Senate, and -9% for the Chamber of Deputies as part of the reduction in public expenses included in the 2025 budget proposal. 

According to Barna, the budget proposal puts “the state on a diet” and shows a higher degree of prudence, but will ensure the payment of salaries and pensions, as well as "massive investments in the economy and substantial funds for local development."

On the other hand, the official announced budget increases for the ministries of Education (10%), Transport (20%), Environment (51%) and Health (50%) compared to previous year. 

The allocated funds will ensure the continuation of investments in the Sibiu-Pitești, Sibiu-Făgăraș, Focșani-Bacău, Ploiești-Buzău, and Buzău-Focșani highways, as well as the rehabilitation of railway lines. Funding will be provided for the construction of regional emergency hospitals in Craiova, Iași, and Cluj, along with significant investments in water and sewage systems and selective waste collection centers, Tanczos Barna said. 

Aside from lowered budgets, some institutions have decided to eliminate certain positions as well. The Chamber of Deputies announced that it would eliminate 240 positions, generating savings of RON 35 million (EUR 7 million). A week ago, the president of the Senate, Ilie Bolojan, announced the elimination of 178 positions from the Senate.

“The entire process will comply with the current legislation regarding social dialogue. Discussions have taken place with union representatives, and it has been reiterated that the legal provisions on collective dismissals will be respected,” said Social Democrat Ciprian Șerban, president of the Chamber of Deputies, cited by HotNews.ro.

Positions will be eliminated from the Legislative Department and Technical Secretariat, the Secretary General’s Office, the Economic and HR departments, along with many others.

Șerban noted that the Chamber of Deputies currently has approximately 1,500 employees.

According to the Chamber of Deputies’ website, more than 30 positions are currently open for recruitment. These include positions for parliamentary advisors, advisors, experts, and cleaning staff, with competitions being organized across multiple committees, services, and directorates.

radu@romania-insider.com

(Photo source: Alexandru Marinescu/Dreamstime.com)

Normal

Romanian government continues cost-cutting drive to tackle massive deficit

29 January 2025

Romanian officials recently announced new measures to cut public expenses, with decreased budgets for the Presidential Administration, Senate, Chamber of Deputies, alongside a series of staff restructuring initiatives. Cost-cutting activities began after the latest data showed that Romania’s budget deficit hit 8.6% in 2024.

Romanian minister of finance Tanczos Barna proposed a -10% cut in the expenses of the Presidential Administration, -5% for the Senate, and -9% for the Chamber of Deputies as part of the reduction in public expenses included in the 2025 budget proposal. 

According to Barna, the budget proposal puts “the state on a diet” and shows a higher degree of prudence, but will ensure the payment of salaries and pensions, as well as "massive investments in the economy and substantial funds for local development."

On the other hand, the official announced budget increases for the ministries of Education (10%), Transport (20%), Environment (51%) and Health (50%) compared to previous year. 

The allocated funds will ensure the continuation of investments in the Sibiu-Pitești, Sibiu-Făgăraș, Focșani-Bacău, Ploiești-Buzău, and Buzău-Focșani highways, as well as the rehabilitation of railway lines. Funding will be provided for the construction of regional emergency hospitals in Craiova, Iași, and Cluj, along with significant investments in water and sewage systems and selective waste collection centers, Tanczos Barna said. 

Aside from lowered budgets, some institutions have decided to eliminate certain positions as well. The Chamber of Deputies announced that it would eliminate 240 positions, generating savings of RON 35 million (EUR 7 million). A week ago, the president of the Senate, Ilie Bolojan, announced the elimination of 178 positions from the Senate.

“The entire process will comply with the current legislation regarding social dialogue. Discussions have taken place with union representatives, and it has been reiterated that the legal provisions on collective dismissals will be respected,” said Social Democrat Ciprian Șerban, president of the Chamber of Deputies, cited by HotNews.ro.

Positions will be eliminated from the Legislative Department and Technical Secretariat, the Secretary General’s Office, the Economic and HR departments, along with many others.

Șerban noted that the Chamber of Deputies currently has approximately 1,500 employees.

According to the Chamber of Deputies’ website, more than 30 positions are currently open for recruitment. These include positions for parliamentary advisors, advisors, experts, and cleaning staff, with competitions being organized across multiple committees, services, and directorates.

radu@romania-insider.com

(Photo source: Alexandru Marinescu/Dreamstime.com)

Normal

Romania Insider Free Newsletters