Romania’s 2011 budget

The budget has been constructed on such indicators as an economic growth rate of 1.5%, a budget deficit of 4.4% of the GDP, as compared to 6.8% this year, an inflation and unemployment rate of 5.8% and 7.8% respectively. The budget is based on reduced current expenditures, salaries, social securities, goods and services and more money allocations for investment.

The budget also provides for a 60% rise in the sums destined for co-financing projects benefitting from European funds. Some 2.3 million Euros are earmarked for this. Prime Minister Emil Boc explained that after two years of crisis, the budget on 2011 would ensure Romania’s economic recovery and would be conducive to a 15% payrise in the public sector, following a 25% cut in July 2011.

Prime Minister Emil Boc:„You have cast your votes for a budget that will raise the volume of investment in Romania from 33 billion in 2010 up to 35 billion in 2011, a key element in the process of ensuring economic growth next year.”



The bad news for state employees is that the 2011 budget says nothing about bonuses, extra hours payment or holiday bonses. The Social-Democrats, Conservatives and National-Liberals, in opposition, have voted against what they called „a budget of poverty” which doesn’t support the business environment, and cannot ensure economic recovery.

The Liberals announced they would contest the budget law at the Constitutional Court. Here is National Liberal MP Eugen Nicolaescu: „This is a budget that does not create new jobs, is not conducive to economic growth, and won’t improve the people’s standard of living. We’ll contest this law at the Constitutional Court.

The opposition has also castigated the state social securities budget, arguing it will deal another blow to the down-and-outs. Labour minister Ioan Botis said it’s for the first time when a pension law introduces a unitary approach with regard to the contribution principle.

Labour minister Ioan Botis.’’This law creates the conditions and prospects for a system which could ensure long and medium term sustainability in terms of pension payment.”

The adoption of the state budget for 2011 is crucial for the release of a new payment of the 20 billion euro foreign aid package Romania agreed upon with the IMF, the EU and other international financial institutions. The EU and IMF are to decide in January the disbursement of a 900 million euro installment.