Ooni Koda
  1. Home
  2. /
  3. Newsfeed
  4. /
  5. BNS trade union urges Romanian gov't to take...

BNS trade union urges Romanian gov't to take more responsibility in fiscal and budgetary policies

August 29, 2024

The announced reforms, e-invoice, e-VAT, have upset the economic environment in Romania, in the conditions in which the fiscal adjustment "has not occurred in the last 4 years and does not seem to occur even in 2024," claim the representatives of the National Trade Union Bloc (BNS), which requests the Romanian government "more responsibility in fiscal and budgetary policies, especially in this election year"."While on May 10, 2024, the Government of Romania maintained its deficit target of 4.9% for the year 2024, the estimates of the European Commission show that the budget deficit will reach 7% of GDP this year," the statement of the trade union organization states."The data published by the Ministry of Finance show an unprecedented worsening of economic indicators, so that the budget deficit in the period January-July 2024 reached 3.6% of GDP (63.66 billion RON). With the exception of the pandemic year 2020 (when the deficit at 6 months was 4.17% of GDP, generated by the objective cause of the closure of the economy), in the first half of the year the public finances recorded the most advanced decline in the last 10 years. Consequently, the public debt reported by the Ministry of Finance has located at a historical record," claim the representatives of the BNS.According to the data communicated by the Ministry of Finance, quoted by the BNS, investment expenses (which include capital expenses) increased in the same period by only 13.47 billion RON compared to the same period in 2023, the difference of almost 13 billion RON from the additional deficit representing the increase in the general operating expenses of the state, including the increase in the interest paid for the public debt, the payment of which reached a historical maximum recorded in the first 6 months of a fiscal year.Interest expenses thus came to represent more than a quarter of the budget deficit, namely 17.6 billion RON for the period January-July 2024 (1% of GDP).Compared to the general operating expenses of the state (339.17 billion RON in the first 6 months), the recorded budget deficit represents 18.67% of their value, also a new negative record, which means that almost a fifth of the expenses are made from borrowed amounts: out of every 5 RON spent by the state, one is borrowed, the quoted source states.At the same time, the size of the deficit in the first 6 months of 2024 (63.66 billion RON) thus came to represent more than all the receipts from VAT for this period (57.09 billion RON) and much more than the total receipts from other 3 budget chapters, respectively from profit tax, salary and income tax and from other taxes on income, profit and capital gains, all of which generate total receipts of 42.3 billion RON).Thus, the size of the budget deficit after the first semester of 2024 (3.6% of GDP) clearly indicates that the budget programming carried out for the current year was defective, under the conditions in which the budget for 2024 was built on a target of 5 % of GDP.  

Read in full - click here
Romanian president nominates former interim president Ilie Bolojan as PM

President Nicușor Dan has nominated Senate president Ilie Bolojan, a leader of the National Liberal Party (PNL) and former interim president, for the prime minister seat. Dan said Bolojan is “the best person to carry out the needed adjustments in the state administration.” He pointed to Bolojan’s track record with reducing spending, and said he has […]

Balkanik Festival: Bucharest event announces lineup of this year's edition

Balkanik Festival – Home of World Music, set to take place at Uranus Garden between September 5 and September 7, lines up this year artists who "celebrate that form of joy that does not ignore reality, but faces it with beauty, energy, and solidarity," the organizers said. The artists performing in September in Bucharest will […]

Romania’s Timișoara announces plans for two new bridges over Bega River

The mayor of Timișoara, Dominic Fritz, announced on Friday, June 20, that two new bridges over the Bega River will be built in the city. The bridges will be financed with EU-backed funds worth over RON 130 million. The bridges in question are the Solventul Bridge, which will connect Gării Street to Dâmbovița Boulevard and […]

Western Romania: 2,000-year-old Sarmatian necropolis discovered in Timișoara

A Sarmatian necropolis nearly 2,000 years old was discovered after archaeological excavations were carried out at the Mehala II site in the municipality of Timișoara, in western Romania. Researchers discovered 15 inhumation graves, most arranged in rectangular pits with rounded corners, although some no longer retain their original outline, having been disturbed by the passage […]

George Enescu Philharmonic Orchestra concert marks Romania Day at Osaka World Expo

The George Enescu Philharmonic Orchestra will deliver on June 26 a concert marking Romania Day at the Osaka World Expo. Additionally, the Bucharest-based orchestra will present a series of other concerts and recitals, both within the Romanian Pavilion and outside, at Toyonara Hall in Osaka. The George Enescu Philharmonic Orchestra's concerts will be conducted by […]

Romania’s Sphera Franchise opens chocolate & ice cream café in Italy

Sphera Franchise Group, the largest food service group in Romania, has opened its first Cioccolatitaliani store in the seaside resort of Riccione, in Italy’s Rimini tourist area.  This marks the official launch of Sphera Group’s development plan for the premium Italian brand of coffee, gelato, and pastry. Under the plan, it will open four locations […]