Less than two months after the enactment of the state budget for 2009, it has already been subject to its first amendment as a result of the worsening of the economic situation leading to a drop in revenues. The amendment refers mainly to the elimination of salary inflation adjustment, a cut in the expenditure of a number of ministries and the introduction of fiscal measures like the controversial lump sum tax for small businesses.
Pressured by the crisis and criticised by trade unions and its political opponents, who accuse it of lacking in ideas, the government is fighting back. Prime Minister Emil Boc has given assurances that the budget amendment approved by Parliament will not lead to a drop in salaries for public employees. The finance minister, Gheorghe Pogea, defended the lump sum tax, which, in his opinion, can bring stability to an ever poorer budget. Minister Pogea has also dismissed as ungrounded the warnings coming from business people and the Liberal opposition, according to whom this minimum tax levelled even on companies that make no profit, will cause the bankruptcy of many businesses.
The government has passed an emergency ordinance which in effect blocks any type of salary increases by the end of the year. Minimum salaries and pensions are not affected by this measure as they will not be reduced, promises the Prime Minister. He did leave some room for salary increases, but only if the economic situation permits it:
The government has passed an emergency ordinance which in effect blocks any type of salary increases by the end of the year. Minimum salaries and pensions are not affected by this measure as they will not be reduced, promises the Prime Minister. He did leave some room for salary increases, but only if the economic situation permits it: