Public sector furloughs would reduce 1.5 bn lei in state expenditures

Public sector payroll will be reduced by 1.5 billion lei in 2009, by forcing public sector workers to take 10 unpaid days off, coupled with a 2.5bn lei reduction of public expenditures on goods and services, said the minister of finance, Gheorghe Pogea.
The government must save over 1 billion euros in order to cap budget deficit at 7.3% of GDP, level agreed with IMF for 2009, compared with 8.3-8.4% of GDP, level expected that it would be reached if no additional measures were taken.

Pogea explained that on one hand, the poll tax would add 300 million lei to budget revenues.

On the other hand, in terms of state expenditures, the state will save up to 1.5 billion lei by imposing public sector workers to take ten-day unpaid leave.

Under the same cost-cutting plan, eliminating overtime would also add another 500 million to state budget.

As for goods and services sector, the minister said expenditures would be cut by 2.485 billion lei, “excepting goods and expenses in health”.


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