Marcel Ciolacu: "4.1% of GDP will be allocated to Education next year"

Prime Minister Marcel Ciolacu declared yesterday that the draft budget drawn up for next year foresees a 60% increase in the funds allocated to National Education, which will thus reach 4.1% of the Gross Domestic Product.

Marcel Ciolacu stated: "We would like the budget project to be made transparent as soon as possible and to go through the Government meeting on Thursday, then next week, until the holidays, we will pass the law through Parliament, and if there is any notification at CCR, let it be the term between Christmas and New Year. There will be a 5% salary increase for the entire budget system, less for dignitaries. We go even further, because the GDP has increased anyway, and allocate 7.3% for investments; it is the highest percentage on investments in Romania's history. We have a historic education budget of 4.1% of GDP, so a 60% increase in the education budget. We must also take into account the fact that we have European funds trapped in the PNRR and in the current financial year of almost 12 billion euros, at this moment. They are the biggest investments in the education system, in schools, in the whole infrastructure".

The prime minister mentioned that for the next year no ministry loses the value of the funds allocated for the year 2023.

Marcel Ciolacu said: "There are ministries that have less money, those that completed the investments and had the money for co-financing this year. Literally, like percentages, it is the Ministry of Economy, but it is normal because the Ministry of SMEs and Tourism has been abolished. We also have an increase at the Ministry of Health, almost 26%, at the Ministry of Transport 30%, there is also an increase at the National House of Health - we reached the figure of 12 billion euros at the House of Health - but we have to find the right way to spend this money, because I, for one, am tired of seeing breaking news on TV that there is no money for medicines, that the hospitals have not been paid, that the programs have not been paid, when we allocate 12 billion euros CASE. We will see; we need, first and foremost, digitization, to know very well in real time where the money is spent and how the money is managed".

The Head of Government also showed that next year "the deficit figure will be at least 0.5% less compared to the deficit with which we will close 2023 and will be below 5%".

Regarding pension increases, the prime minister said that they are all budgeted: "And pensions, with 13.8%, and the application of the pension law from September. In fact, the pension law applies from January 1, but the recalculation from September 1. Everything is budgeted, it's not a problem, we will close with a deficit below 5%".

Marcel Ciolacu stated that next year the value of the minimum wage in the economy will also increase, without advancing any percentage in this regard, but he showed that the said wage increase as well as the date from which it will take effect will be discussed and established by mutual agreement with social partners until December 31, 2023. At this moment, the minimum gross basic salary per country guaranteed in payment is now 3,300 lei per month, a value set by the Government starting from October 1, 2023.

Regarding the European funds, the Prime Minister mentioned that at the end of this week the Government will submit to the European Commission the payment request number 3 for the amounts allocated through the PNRR.

The Head of Government stated: "The payment request number 3 will be submitted on Friday to the minister from the European funds. Naturally, we will then enter into the negotiation procedure on each milestone. More substantial problems with payment request 3 are at milestone 206, with micro-enterprises, but we will discuss, we will negotiate, we will see what measures are taken now in the budget, in the "train" ordinance, as they say in the press and in politics, and I hope that we will continue the negotiations."

Marcel Ciolacu wanted to dispel the rumors regarding the increase in the contribution for Pillar 2 of pensions, an increase that constitutes a milestone in the PNRR.

The Prime Minister said: "We have assumed a milestone and that is why I am sometimes angry because someone always wants to create some fake news. If I didn't increase Pillar 2, as the Romanian state assumed through the milestone, and this coalition assumed...; when the prime minister was Nicolae Ciucă, we assumed this increase. There is a milestone set in the PNRR, if I don't meet this milestone, then the European Commission comes and stops this money. (...) I have a milestone that I have undertaken, together with Mr. Nicolae Ciucă. Mr. Nicolae Ciucă and I have never discussed not meeting a certain milestone. Furthermore, you can't fool the Commission, pass a milestone and two months later change your mind, postpone the milestone or change it because once we do that, the Commission will stop the money for that reform and I assume not we want this".

Regarding the draft budget for next year, the leaders of the PNL - the coalition partner of the PSD - stated that they are satisfied with the fact that the Education's budget in 2024 will have a "substantial increase" of approximately 61%, thus ensuring the necessary funds for increasing the salaries of teaching and non-teaching staff.

The President of PNL, Nicolae Ciucă, showed that next year the Ministry of Development will have a 60% higher allocation compared to 2023, but specified that it will include the financing of "works that have already started and contracts have been signed", especially on the PNRR and on the Anghel Saligny program.

In relation to the situation of Pillar 2 of pensions, Nicolae Ciucă said that there will be no change, except for the increase in the allocated percentage assumed by the PNRR, an increase that will take place on January 1, 2024.