| A LONG AWAITED BUDGET 23/02/2009 |
| (2009-02-23) |
| Last updated: 2009-02-24 14:52 EET |
After four days of debates, the Parliament of Romania late last week endorsed the 2009 state budget and social security budget bills. The two budgets should have been ready as early as last autumn, but the bills drafted by the former government relied on economic indicators that the new power regarded as over-optimistic. Particularly since the global economic crisis has reached Romania early this year, after Bucharest authorities had presented the country, for several months, as being safe from its harsh effects. The number of the unemployed and of bankrupt companies increases by the day, as so does the number of bank customers who are no longer able to repay their loans, or who choose to return their cars to leasing companies, in an attempt to reduce expenses. The near future doesn’t look too bright either.
After years of economic growth, in 2009 the most optimistic scenarios point to a 2.5 per cent economic growth rate for Romania, and a 2 per cent budget deficit. These targets eyed by the new government in Bucharest are seen as impossible to reach by most analysts. The opposition as well regards the state budget bill as unrealistic, although the draft law passed with flying colours in Parliament, thanks to the over 70 per cent of the parliamentary seats held by the ruling coalition. The Liberals, in opposition, argue that there is no coherent anti-crisis plan.
The former Prime Minister, Liberal Calin Popescu Tariceanu, claims that, quote, “There is little money for infrastructure. There is even less for education and research. Not to mention the funds earmarked for agriculture and defence.” Tariceanu also criticised the inadequate funding of the public healthcare and social security sectors. The budget bill, as enacted by Parliament, is imperfect, but it largely ensures a balance between public investment and social protection, the government retorts. According to policy makers, while the budget is no complete response to the economic crisis, it does pave the way for one, and one of its priorities is to identify solutions to preserve as many jobs as possible.
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2025-04-03
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