Romanian State-Run Cos Have Two Weeks To Submit Revised Budgets, Slashing 20% Of Costs

Managers of Romanian state-run companies have two weeks to send the Government revised budget plans, in which protocol and advertising spending for the second half of the year must be 20% lower, according to an emergency decree the Government adopted.

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The decree states state-run companies and public authorities have 15 days to submit to the Government for approval revised budgets for the second half of the year, cutting 20% of spending on goods and services, protocol and advertising. Only production expenditure is exempt from the cut.

Three weeks ago, the Government said it would reassess budgets of state-run companies, a first step toward slashing the wages of these companies' employees.

Recession-hit Romania, which is relying on a EUR20 billion international rescue loan led by the International Monetary Fund, has pledged to drastically cut public spending and the Government has adopted laws cutting public sector wages and pensions. The laws are pending a ruling from the Constitutional Court Friday.

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