The government will not adopt the ordinance amending the Fiscal Code this week

200.000 unoccupied budgetary positions would be abolished, according to a decision of the leaders of the governing coalition, who approved a proposal to this effect by Prime Minister Marcel Ciolacu.

The measure should bring savings to the budget not only on paper, because the organizational charts of the institutions are also reduced, but they will also disappear from management positions.

Another proposal of the PNL leader, Nicolae Ciuca, regarding the reduction of other expenses from ministries with goods and services and with fuel consumption, was also agreed, but the coalition failed to reach an agreement on the package of fiscal measures that should reduce the budget deficit, so the Government will not adopt the ordinance amending the Fiscal Code this week.

However, something still needs to be done as soon as possible, because, according to the finance minister, it would be vital for Romania to fall within a maximum deficit target of 5%, otherwise it risks losing the European funds from the NRRP. What measures are taken into account by the governors, Petruta Obrejan tells us.

It is intended to increase the minimum wage in construction from 4.000 to 4.500 lei, simultaneously with the elimination of the exemption from paying health contributions for employees in agriculture, the food industry and construction.

The establishment of two VAT rates, one of 9% and another of 19%, was also discussed.

Another measure aims to increase the tax on dividends, but also the tax threshold to 2.5% for micro-enterprises whose turnover exceeds 500.000 euros.

Translated by: Radu Matei