IMF's visit in Romania prompts drastic public sector spending cuts

The minister of finance, Gheorghe Pogea said it intends to plug the National Prognosis Commission into the Ministry’s macroeconomic review department, without giving any target date for the completion of the process.

“We intend to bring the National Prognosis Comission and Macro policy department together. Nevertheless, for the time being, their activity has not been completely separated, NPC being under the Ministry of Finance leadership. This process is part of the restructuring process that involves ministries and agencies”, said Pogea.

National Prognosis Commission has adopted various forms of organization over the years. In 1990 a Prediction and Economic Orientation Department under Ministry of Finance was in place, which later on in 1993, was renamed as National Prognosis Commission.

In 1999, the institution was steered back under the Ministry of Finance, as a General Directorate of Prognosis, only to adopt its current configuration in 2003.

Constantin Nita, minister of Small and Medium-Sized Enterprises, said the ministry would keep only two agencies under the its clout, ANPC and OSM, and the measure would result in a 200 job cut of a total 680.

“We have proposed a restructuring, which would leave only two major institutions under the ministry’s management: The National Agency for Consumer Protection (ANPC) and State Office for Inventions and Trademarks”, said the minister.

Nita said the restructuring process would result in a 200 job cut and a reduction of public sector workforce by 120-130.

Nevertheless, the Social Democratic Party disagrees with the 20% cut in public sector payroll, measure that was never considered by the Government so far, as Nita said. He also expressed his support to keep public sector jobs unchanged, even if that implies salary cuts. “If the layoff option is considered, the issue must be approved by our social partners, trade unions, and organizations of local public sector”, said the vice president of PSD, Constantin Nita.

He added that the weight of public sector wages in GDP was too high, 8% of gross domestic product, and their share should be capped to 6-6.5%.

Restructuring at Ministry of Defense

The Ministry of Defense, Mihai Stanisoara prompted the reduction of ministry’s payroll by 20%, namely 5 jobs of 26 will be eliminated, according to the ministry’s spokesperson, Constantin Spanu.

The monthly public sector spending afferent to the payment of the five employees’ salaries is at nearly 21,500 lei. The measure was put in place starting August 1, Spanu added.

Calculator Salariu: Află câți bani primești în mână în funcție de salariul brut »

---

Te-ar putea interesa și: