“Austerity Ordinance” DOCUMENT published by the Ministry of Finance. All the measures by which the Government hopes to save over 5 billion lei, although the budget hole is four times larger

2023-05-08 18:10:00

The Ministry of Finance has published the Austerity Ordinance by which it hopes to make savings of 5.3 billion lei, given that the budget gap officially announced is 20 billion lei.

the Ministry of FinancePhoto: Hotnews

Among the measures in the document are cuts from goods and services, a ban on car purchases, a freeze on state employment, with a few exceptions, limiting CA members to a maximum of 2 companies and others.

Also, those who hold the academic title of doctor benefit from an allowance of 50% of the minimum gross basic salary per country guaranteed in payment if they carry out their activity in the field for which they hold the title.

The draft legislation was published after Coalition leaders agreed on the measures at a meeting on Monday afternoon.

The 10 austerity measures taken by the Government

1. Expenditure on goods and services will have to be reduced by 10%.

  • There is an exception: respectively the expenses with medicines and sanitary materials, with medical services, for expenses with actions and health programs, as well as in the case of expenses related to pre-university and university education units.

2. Public authorities and institutions, including those with their own income, will no longer be able to purchase, lease or rent cars, as well as furniture and office equipment.

  • Where such goods are needed, redistributions will have to be made including from other institutions. As for ongoing public procurements, they will be able to be completed.

3. Freeze state employment.

  • In thoroughly justified cases, by means of a memorandum approved in the Government meeting, the organization of contests or exams can be approved.
  • For the positions for which the written test of the contests or exams, or the practical test was held, the procedures for their occupation can be continued.
  • Public leadership positions can be exercised temporarily, without the obligation to organize contests, with the prior notification of the National Agency of Civil Servants 5 days before the measure is ordered.

4. Staff holding the scientific title of doctor benefits from an allowance for the scientific title of doctor in the amount of 50% of the level of the minimum gross basic salary per country guaranteed in payment, which is granted monthly only if he carries out his activity in the field for which he holds the title and if the job description provides a set of objective and quantifiable attributes that allow the monthly verification of how his activity is additionally capitalized.

  • The salary amount of this allowance is not taken into account when determining the limit of increments, compensations, premiums, prizes and allowances.
  • Within 30 days from the entry into force of the emergency ordinance, the heads of public authorities and institutions, regardless of the way of financing and subordination, have the obligation to order the modification of job descriptions.

5. Amounts withheld, in the proportion of 10% in the state budget, in the state social insurance budget and the unemployment insurance budget, are canceled on the occasion of the first budget correctionwith the exception of investment expenses, expenses with state reserve stocks and mobilization and expenses related to civil compensation.

6. The Agency for the Quality and Marketing of Agri-Food Products will be established in 2024. Basically, by ordinance it is a 1-year postponement.

7. For a period of 24 months from the entry into force of the emergency ordinance, the contracting authorities that award public procurement contracts whose object is agri-food products apply the award criterion of the best quality-price ratio.

  • The weighting set for the quality evaluation factor will be 70% of the total score and is composed of: 50% for the sub-factor “supply chain” and 20% for holding the veterinary sanitary authorisation/registration and food safety or phytosanitary certificate or the certificate of origin, as the case may be, and for compliance with the legislation on the traceability of agri-food products.

8. CA member at a maximum of two state companies

  • In 2023, staff from public authorities and institutions can hold the position of member of the board of directors and/or member of the supervisory board of a maximum of two public enterprises or in the management bodies of other entities owned by the state or administrative units- territorial whose seat is located on the territory of Romania.

9. After the entry into force of the emergency ordinance, the Government can adopt draft normative acts/public policy documents, the application of which leads to a decrease in revenues or an increase in expenses approved by the budget, only if they are accompanied by the financial statement.

10. Changes regarding the number of positions within the cabinet and the chancellery

The maximum number of positions within the cabinet, respectively the chancellery, is:

  • 9 posts for the prime minister’s cabinet;
  • 6 positions for the cabinet of the deputy prime minister with portfolio, the minister of state;
  • 4 posts for the deputy prime minister’s cabinet without portfolio;
  • 4 positions for the cabinet of the minister, the general secretary of the Government and the head of the Prime Minister’s Chancellery;
  • 4 positions for the cabinet of the delegated minister;
  • 2 positions for the cabinet of the deputy general secretary of the Government, the secretary of state and his equivalent within the ministries and the working apparatus of the Government and the state councillor;
  • 2 positions for the cabinet of the head of the specialized body of the central public administration, with the rank of state secretary;
  • 1 position for the cabinet of the undersecretary of state and his equivalent within the Government’s working apparatus within the ministries and other specialized bodies of the central public administration;

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