Romanian PM Ponta admits government might have to lay off public servants.

By bne IntelliNews March 11, 2013
Some Romanian ministries might have to reduce their workforce in order to meet the 15% public payroll cut target, but the government wants to hire more personnel in understaffed sectors like healthcare, education and police, PM Victor Ponta said in a TV broadcasted interview, quoted by news agency Mediafax. There will be no wage cuts, he added. As we reported, Ponta urged last week his ministries to seek ways for cutting the public payroll and overhead expenses by 15%. Altogether, the 15% cut would result in substantial savings equivalent to 2% of GDP. The suggestion dates back from the beginning of the year actually, Ponta explained, and the deadline for proposals is March 31. The demand was striking however, since the government had already endorsed the budget planning for this year and the 15% cut would be calculated in this year's planning [and not as part of last year's realisations]. This prompted speculations related to the actual budget revenues in January-February. Romania's budgetary sector employs 1.2mn and the overall payroll is RON 46.2bn (EUR 10.2bn).

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