Theme: Thursday, December 15, 2001

Address by PM Emil Boc after the passing by Parliament of the Draft State Budget for 2012

GUVERNUL ROMANIEI
GUVERNUL ROMANIEI

I want to tell you that today, for the first time in the last 20 years, there has been voted a budget without electoral significance for the electoral year to come. We have no better proof that this is happening than the reaction of the opposition. I appreciate the force of the coalition, the fact that it gave a vote without falling prey to the populist and electoral temptation.
I want you to show me, in the last 20 years, when a government coalition passed a draft budget for an election year, with a deficit of 1.9% and without any populist or electoral tint or electoral alms allocated as such? Congratulations and thank you, dear colleagues! This is proof that policy changes in Romania. It is testament to the fact that the current government coalition has embraced responsibility and sent in history or to USL the populism and demagogy. Have you seen how upset are the opposition leaders when they say "why did you not accept our electoral alms of 5.2 billion EUR?" Because to accept the opposition amendments, it meant this - an additional deficit of 4% or 5, 2 billion EUR, which probably Mr. Ponta and Antonescu had in any hidden pantry, because in Romania and Europe, today, no one funds electoral alms.

And this was not understood even in the eleventh hour by the opposition. In fact, what to understand when Mr. Ponta, when the discussion on introduction of the deficit in the Constitution came, said it is a huge stupidity.
Today, he says "yes, it should be done" because it finally begins to understand that Europe is going in another direction. But he must remain consistent. He agrees with the introduction of the structural deficit of 0.5%, I realized his last thought, the latest, if he does not change his mind, but he proposes to budget law deficit in addition to 4 percent. When are you consistent, Mr.Ponta? When you accept the introduction of the structural deficit of 0.5% in the Constitution, or when you propose a 4 percent increase in state budget deficit for 2012?
So these things prove once again that the opposition, unfortunately, remains captive of populism. And with all due respect to former prime minister position, I want to remind Mr. Tariceanu that the data we have used and which he contests, including today, in the plenum of Parliament are from the Tax Council report for 2010, which on page 27, Mr. former Prime Minister, say "by the end of 2008, the structural deficit reached a level of 8.9% of GDP, thus exhausting the room for maneuver for fiscal relaxation in the recession period that followed. " I quote from the Fiscal Council Report on the website of the Fiscal Council. And this report is also contested, former Prime Minister? This is a consequence of the fact that, in 2008, they initially started with a budget which allocated 39 billion lei for investment and spent only 32 billion. Where do you think that money went? For the electoral alms, spending on salaries, social welfare. Because on that chapter, regarding the staff, they left with 28 billion and spent 45 billion. This is testament once again to political irresponsibility and increase in the structural deficit. In order for the world to understand once again: the structural deficit rises when you suggest permanent spending, such as those with wages and pensions, without coverage in permanent incomes.
However, this was made by Tariceanu Government in 2008: he took money from investments, rather than spend 39, spent 32 and spent the money on permanent expenses with salaries and pensions from 28 to 45 billion. There was, again, where this major imbalance occurred in Romania, which ever since we correct it and, finally, through the budget that you approved, we enroll today in path that EU requires us explicitly by the Constitution, to arrive at a structural deficit of 0.5%. So, once again, this is the ultimate argument for saying that you voted for responsible budget, a budget to strengthen economic growth in Romania.
It brings additional spending on investment. What good was if in 2008, there would be retained for investment 39 billion lei. Only now, in 2012, we grow from 36.1 to 38.1 investment expenditure and, again, while the deficit decreases from 4.4 to 1.9. This is proof of responsibility towards the country. It is true that it has nothing to do with populism and demagogy, but is responsible with what means Romania's future and ensuring sustainable economic growth to this country. For all these reasons, distinguished colleagues, thank you and I assure you that you did what you should for Romania!
 

Issuer: Government of Romania – Press office

Date: 15.12.2011