The Ministry of Development, on August 7, published for consultations the draft bill for local administration reform, part of the second package of reforms, besides the state-owned enterprises (SOE) reform and the special pension reform.<\/p>\n
While the SOE reform was left without a coordinator after deputy prime minister Dragos Anastasiu resigned<\/a>, the special pension reform faced fierce opposition<\/a> from magistrates.<\/p>\n The local administration reform bill follows the general outline provided by minister Czeke Attila previously: higher revenues, lower spending, particularly payroll, smoother functioning of the institutions, better tax collection, and more local autonomy.\u00a0<\/p>\n Among the main measures included in the draft bill, there are: cutting the number of personal advisors employed and paid from the budget by top public servants by 6,060; downsizing by 20% the recommended staff (minimum, medium and maximum levels) in village halls to city halls and prefectures (government’s bodies at county level);\u00a0improving the coverage of property taxation by identifying all properties and charging 100% supplementary property tax for the properties without a building permit, over a period of five years; and charging a 30% surtax on the driving fines not paid within 3 months and another 30% surtax for the fines not paid within 6 months and lifting the driving rights for those who fail to pay the fine within 3 months.<\/p>\n The recovery of unpaid local taxes will be passed to judicial officers.<\/p>\n The draft bill also includes detailed evaluation procedures for employees in the local public administration to be enforced once the bill is approved as a law and periodically afterwards.<\/p>\n The estimate of the budgetary impact is incomplete and prudent as it seems to include only the savings generated by the lower staff and not the higher revenues that have a lower degree of certainty.<\/p>\n Specifically, the substantiation note published along with the draft bill indicates RON 2.2 billion (EUR 400 million) lower annual expenditures from the general government budget. This accounts for only 0.1% of this year’s GDP. In 2025, however, the impact will be proportional to the period of enforcement.\u00a0<\/p>\n For comparison, the impact of the first package of reforms on the general government budget is estimated at 3.3% of GDP in 2026, according to the Fiscal Council’s projection shared by the rating agencies.<\/p>\n iulian@romania-insider.com<\/em><\/p>\n (Photo source: Gov.ro)<\/em><\/p>","protected":false},"excerpt":{"rendered":" The Ministry of Development, on August 7, published for consultations the draft bill for local administration reform, part of the second package of reforms, besides the state-owned enterprises (SOE) reform and the special pension reform. While the SOE reform was left without a coordinator after deputy prime minister Dragos Anastasiu resigned, the special pension reform […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6248","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/6248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6248"}],"version-history":[{"count":0,"href":"https:\/\/ofero.news\/index.php?rest_route=\/wp\/v2\/posts\/6248\/revisions"}],"wp:attachment":[{"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ofero.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}