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Statement letter to the IMF: fiscal evasion increases, effective payments of Rompetrol is uncertain / Early retirements are frozen. Budgetary personnel needs to be laid off

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Romania’s statement letter to the IMF reveals that accumulated fiscal revenues are considerably lower than those initially projected. The letter reads that in the next months supplementary measures will be taken to decrease the number of budgetary personnel.

Moreover, the letter mentions that the Rompetrol debt is uncertain while the economic increase was negatively influenced by the weak internal request.

Measures assumed by the government until June 1:

  • a 25% decrease of salaries, benefits and other salary payments for all budgetary personnel
  • a 15% decrease of pensions and other social transfers (1% of GDP)
  • a decrease of transfers to local authorities (0.3% of GDP)
  • a decrease of subsidies for heating (0.03% of GDP)
  • if these actions are not implemented until June 2010, supplementary measures will be implemented

Measures to increase budgetary revenues

  • introduction of clawback for distributors of medical pills

Supplementary economies:

  • temporary freeze of early retirements
  • controlling pensions given on invalid reasons
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