The PSD game regarding the state budget. What do the submitted amendments provide and what do the other parties do

The PSD submitted at least seven amendments to the state budget, according to HotNews sources, a day after the PNL warned that such a move was a breach of governance protocol. Five of the amendments, obtained by HotNews, practically introduce the “solidarity package” into the budget, which the party has insisted on in recent months. The PSD claims to have found two sources of additional income to finance it, Social Democratic sources told HotNews.

• Until 13.00, amendments to the state budget could be submitted. PSD submitted at least seven, five of which concern the social package. There are also amendments to redirect money to the territory or to supplement certain ministerial programs, according to HotNews sources.
• The total number of submitted amendments is not yet centralized, being submitted by other parties as well. AUR had announced since the weekend that it would submit several amendments, including some aimed at eliminating CASS (similar to an amendment submitted by PSD) for people on parental leave, reducing VAT rates to 19% (standard) and 9% (reduced), indexing pensions by 5% and others.
• USR announced on Sunday evening that it will not support or submit any amendment to the state budget in Parliament.
• UDMR did not submit any amendment, according to HotNews sources. The party will decide on Monday, in a meeting, whether it will support the PSD amendments or not: “Theoretically we would vote for them, but we don't want to associate with AUR”, say party sources.

The PSD announced that it is introducing the amendments on the grounds that it has found two sources of additional revenues to the state budget, worth 2.3 billion lei, which it claims the Ministry of Finance, led by Alexandru Nazare (PNL), “overlooked them absolutely unjustifiably”.

According to the social democrats, it is about:

“1. Recovery of a share of arrears to the budget on social insurance contributions”

• “The total outstanding social contributions of economic agents is 3.7 billion lei, we believe that a recovery target of 1.3 billion lei is absolutely mandatory, because these arrears to the budget mean money withheld from the salary of employees for CAS, but not transferred to the state”, according to HotNews sources from the party.

2. The collection to the budget of an additional amount from VAT, more precisely 1 billion lei, “taking into account the increase in the price of fuels which means an increase in the revenues collected by the entire fuel market – one of the most important branches of the economy”.

What does PSD want extra money for?

This money, PSD says, can now be used further to “complete the full financing of the entire solidarity package”. It is about the amount of 1.1 billion lei, to which is also added the compensation for the loss of income following the introduction of CASS for mothers, war veterans and prisoners (about 500 million lei).

The rest of the money, up to 2.3 billion lei, remains at the disposal of the Ministry of Finance “to be reallocated within the budget, depending on needs”, PSD sources said.

Until now, the PNL has not commented on the information from the PSD regarding new sources of income. The Liberals are meeting from 1.30pm to discuss “budget vote coordination and voting discipline”, according to HotNews sources.

How PSD justifies the amendments

The PSD claims, in the justification of the amendments, that the new sources of income found can be used for the aid for vulnerable people and for the elimination of CASS for war veterans, for the widows of war veterans, people persecuted during the communist period, monastic staff (ie priests and monks) or for mothers on postnatal leave.

The Bolojan government decided to remove from September 1 the exemption from paying the CASS health contribution for these categories of people.

“For veterans and war widows it is an act of gratitude for the sacrifice made to the homeland, and in the case of former political prisoners it represents a moral reparation for the sufferings endured during the communist dictatorship,” say the social democrats, according to documents obtained by HotNews.

The PSD argues that the contribution exemption for the disabled “has a deeply humanitarian dimension”, and the exemption for monastic staff sends a message of respect “for the vocation and austerity of a life dedicated to moral and spiritual values”.

The PSD says that the amendments must be adopted, because it is not just about a fiscal adjustment, but about “a gesture of social justice and humanity”.

Regarding mothers on parental leave, the PSD states, in the justification of the amendment obtained by HotNews, that the exemption from the CASS payment is needed because “their incomes are already reduced during the leave, and the costs of raising and caring for children are considerable.”

“The obligation to pay additional contributions in such a period would mean the direct discouragement of births and the accentuation of social inequalities,” explain the social democrats.

PSD and PNL, against one day before the budget reaches the Parliament

The PSD submitted these amendments to the budget in the Parliament today after, on Sunday, the day before, the PNL had asked the social democrats not to take this step, which involves increasing expenses, without prior discussions in the coalition.

The Liberals said Article 19 of the coalition's political agreement stipulates that “no initiative or vote involving increases in budget spending can take place without the prior approval of the Coalition leadership.”

In addition, also on Sunday, the liberals submitted PSD could pass the amendments through negotiations behind the scenes or imposed by “surprise votes”. Their fears were expressed already on Saturday by the leader of the PNL Iasi organization, Alexandru Muraru, who declared, on Antena 3, that PSD and AUR agreed to vote together, in committees and in plenary, on amendments to the draft budget.

Grindeanu, direct attack on Bolojan

Also on Sunday, PSD president Sorin Grindeanu sent in a public letter that his party will vote on the budget, but that he is not giving up on the amendments introducing the “social package”.

In his public reaction, Grindeanu also launched a series of attacks on Prime Minister Ilie Bolojan.

“I can no longer witness the deliberate impoverishment of millions of Romanians and I can no longer maintain an attitude of permanent defiance towards the PSD, the party that ensures the stability of the Coalition with a 46% share of the current government”, claimed the PSD president.

Bolojan accuses PSD of having “AUR-type rhetoric”

Later, in an intervention on Digi24, Ilie Bolojan responded to this message from the PSD, saying that the social democrats come with “GOLD rhetoric”.

“Through this game of amendments, the PSD is trying to come up with an AUR-type rhetoric, somehow trying to distance itself from the government's responsibility. I don't think it's a solution that will bring results. Trying to copy a certain rhetoric, I don't think you solve things,” said Ilie Bolojan.

In other words, if the amendments proposed by the PSD pass the Parliament with the AUR vote, the social democrats shift the pressure on Prime Minister Bolojan, who must decide what to do next, in the context in which the state budget law will have a different form than the one supported by him.