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Provisions of the 2012 Budget
(2011-12-16)
Last updated: 2011-12-19 12:37 EET
Consultari Traian Basescu - partide politice Parliament has recently passed the 2012 state and social security budgets drafted by the Government. According to the two documents, in 2012 the flat tax, the VAT as well as contributions to social security schemes will be maintained at the current level, and so will salaries in the public sector. The budget provides for a budget deficit of 1.9% and an economic growth of 2.1% of the GDP. The budget is grounded on an inflation rate of 3.4%, an unemployment rate of 4.5% and an average gross income of approximately 500 euros. None of the over eight thousand amendments put forth by the opposition was pushed into the budget for next year.


Prime Minister Emil Boc said the new budget was one of austerity, responsibility and caution, aimed at consolidating economic growth. The Romanian official added the budget was focused on drawing investments, making more jobs available, absorbing EU funds as well as supporting the business environment. Emil Boc:

“For the first time in the past 20 years, a budget has been voted devoid of any electoral promises for the 2012 election year. And there’s no better evidence of that than the reaction of the opposition. I hail the strength of the ruling coalition for casting their vote without giving in to populist and electoral temptations”.


The opposition refused to cast their votes. Former Prime Minister Liberal MP Calin Popescu Tariceanu said the budget was misleading, claiming it included investment for the so-called “electoral bribes”. Calin Popescu Tariceanu:

“The budget fails to check the economic downturn and give Romanians hopes with respect to bringing the economy back on track and a higher living standard. Unfortunately, the current budget is but a typical example of mixing algebra with budget funds, and it isn’t any different from other budgets in recent years. What it does is deepen the economic decline and maintain the gap between Romania and other European states”.


Moreover, the opposition has criticized the government for their lack of vision and for their unaccountability towards the population. Social-Democrat MP Mircea Dusa:

“You have voted a budget for 2012, a budget of horrors and poverty. You continue to be Romania’s executioners. The opposition has submitted nine thousand amendments, of which you’ve accepted none. This is telling of the cooperation between the Liberal-Democratic Party and the opposition”.


In turn, Social-Democrat leader Victor Ponta has given assurances that all amendments forwarded by his party will be included in the draft budget for 2013, when the opposition will come to power.

 
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