Romania’s Health Ministry To Axe Its Budget Expenses By 20% Amid Public Spending Cuts

Romania’s Health Minister Attila Cseke on Thursday said his ministry will cut by 20% its budget expenses approved for the procurement of goods and services in 2010, adding it will also enforce the 25% salary cut recently announced for all employees in the public sector.

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Cseke stressed that the additional 20% cut in the ministry's expenditures translates into savings of 975,989 lei (EUR1=RON4.1785).

Cseke explained that his ministry will reduce costs with fuels, communications, radio, TV and Internet services, business trips both to Romania and abroad, temporary and permanent detachments, as well as consultancy and expertise services.

Romania's Government estimates it will save RON5.39 billion in the second half of 2010, or 1.06% of the country's GDP, due to the recently announced 25% public sector wage cut, and a further RON5.2 billion, or 1% of the GDP, due to social aid cuts, says a document issued by the Finance Ministry.

In last week's additional letter of intent to the standby agreement with the IMF, the Government estimated it will save a cumulated 1.03% of the GDP through the 25% cut of public sector salaries, the 15% cut of pensions and reduced heating subsidies.

Joint teams from the IMF, the EU and the World Bank were in Bucharest until May 10 for the fourth review of Romania's performance under a EUR20 billion financial package signed last spring.

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