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Romanian Public Sector Salaries May Be Adjusted In 2011 If Reforms Continue – PM

Romanian Prime Minister Emil Boc said Wednesday on national radio that public sector salaries may be “adjusted” in 2011, as long as the process of reform and restructuring continues.
Romanian Public Sector Salaries May Be Adjusted In 2011 If Reforms Continue - PM
Ispas Livia Florica
25 aug. 2010, 19:54, English

If this is done, the salaries of employees of the public sector might return to their pre-2010 level, Boc said. „In 2008, when we took over the government, there were 1,396,000 public servants and in March 2010 their number was 1,360,000. Through the restructuring process started this year, we have laid off 75,000 public sector employees so far and cut 14,000 vacant positions,” said Boc.

The prime minister said the Government’s forecast for 2011 provides a 4.4% budget gap, a salary pool of 39 billion lei (EUR1=RON4.2368) and reducing the number of public servants to 1,290,000. He also said the International Monetary Fund and European Commission estimate Romania will have a 2% GDP growth by 2011.

Boc explained that Government Ordinance 58, which amends the Fiscal Code, aims to enlarge the tax base and decrease tax evasion. He pointed out that 10.8 million Romanians do not pay healthcare contributions and argued that a larger tax base is required to support a functioning healthcare system.