Minister of Finance: State operating costs must be reduced

State running costs must be cut, said Finance Minister Tanczos Barna, who warned ministries to take action.

Speaking to a TV station, he warned that the ministry will force other public institutions to stick to their budgets.

Tanczos Barna also expressed the hope that this month will see the first results of the decisions taken towards the end of last year.

Tanczos Barna: In the first months, we have practically seen the effects of last year's wage increases, the hiring in October, November, December, which partly carried over into January, the percentage of hiring, the percentage of wage increases. Things are starting to move on a steady curve and I hope that from April we will see the first concrete results in terms of spending cuts. The Ministry of Finance is forcing line ministries to stay within the budget they have. If this means cutting operating expenditure by 5%, 7%, 8%, they must do so. Further, we need to focus on investment. Especially in these times, when the external situation is unfavorable, we have to rely on our resources from the NRRP and European funds to maintain economic growth and jobs.

Tanczos Barna also said that the authorities are not considering any tax increases this year.

Translated by: Radu Matei