Government adopts 2009 budget and anti-crisis plan

The Romanian Government approved on Thursday the 2009 state budget and may also approve the main anti-crisis measures, agreed upon with labor unions and employers’ associations. The budget draft will be sent to the Parliament on Friday. A preliminary version was adopted last Thursday, but the first version suffered several modifications after negotiations with unions and employers.

PM Emil Boc’s statements, after the budget adoption:

– We included several suggestions made by our social partners;

– The state budget and social insurance budget will be sent to the Parliament on Friday;

– We reached a final form for the anti-crisis measures, which was included in the same draft;

– We will focus on European funds absorption;

– Low income persons are a priority in social protection;

– The minimum pensions will grow to 350 RON (some 80 Euros);

– The budget focuses on creating and maintaining jobs;

– In 2009, unemployment will be paid for three month more than usual;

– For the budgetary segment, a unique income law will be discussed and put up until April 15. All wage raises will come after April 15, when we know the financial results of the first quarter;

– For 2009, the Government suggests freezing the wages for all dignitaries.

Then anti-crisis plan, in brief:

– 20% of the budget will go to massive investments in infrastructure;

– The Government’s debt is a priority. Without paying the remaining debt, the economy is blocked;

– The re-invested profit will not be subject to taxes, starting in 2010. The impact of this decision will be 3.44 BN RON, representing 0.59 of the GDP;

– Compensating VAT returns with VAT to be paid will be possible;

– CEC and Exim Bank will be capitalized;

– There will be a fund to help small and medium enterprises;

– The „Wrecks” program (buying back old cars in exchange for incentives when buying a new car) will continue and will grow;

– The general budget will include the income of state agencies and institutions;

– The minimum pension will be 350 RON, growing in two steps – on May 1 and October 1;

– The retired persons will have the medication compensated by 90% for those with pensions under 600 RON, necessary funds will be gathered from the tax on vice;

– For the temporary unemployment under 3 months, the social contributions are not paid.

– Compensating VAT to be paid with due VAT;

– Including the income of governmental institutions and agencies in the consolidated state budget.