Budget construction, in Convergence program

According to the medium term project, the Government has set as elements of fiscal consolidation the continuation of reform measures of public expenditure, improvement of the policy in the field of investments, continuation of reduction and prevention of appearance of the arrears, improvement of corporate governance.

The main measures aim at reduction of wages in the public sector by reducing them substantially in 2010, followed by a rise on average of about 15 percent in 2011, but in conjunction with the elimination of the vacation bonuses and of the 13th wage and by maintaining the policy of filling in only 1 of 7 positions that become vacant. Basic effect of these measures ensures a medium-term downward trend of personnel costs reported to the GDP.

The project provides substantiation and rendering more efficient the material expenditures in line with the implementing cost regulations in the public administration, savings due to restructuring of governmental agencies, restructuring the health sector to achieve an appropriate balance between the need to maintain adequate health care and the control of costs and to eliminate the accumulation of arrears, the introduction of the co-payment for health services, implementation of hospital rationalization strategy to reduce the number of funded hospital beds; freeze of the pension point for 2011.

The Government established as zero priority to direct public funds to investments field, as well as to the speeding up of European funds absorption.

One of the political objectives assumed by the Government in relation to international financial institutions (IMF, European Commission and World Bank), is the profound reform of state enterprises, especially those in key sectors such as Energy and Transportation.

To solve the issues related to manage the state enterprises it is going to be developed (in consultation with the World Bank) and introduced periodical and independent mandatory external audits of these companies and the financial control of the public enterprises will be transferred from ministries to the MPF, until late September 2011.