Romania is Spending 9% of GDP on Wages

Romania is Spending 9% of GDP on Wages

Romania is currently spending approx. 9 percent of its Gross Domestic Product (GDP) on wages in the public sector, that is more by 3 percent compared with other countries, Transport Minister Radu Berceanu told a TV channel.

'Romania is currently spending 9 percent of its GDP on wages paid in the public sector, that is by 3 more than other states. That means we are spending on wages as much as 5 billion euros, while 2 billion from this amount would have been just what I needed this year to go on with building motorways,' Berceanu said.

He also stated that while the Executive cannot directly influence the private environment, it needs instead to take harsh measures in the public sector, so that to rebalance the manner in which expenditures are made, beginning with wages and including acquisitions.

'The private environment brought back almost no reactions to our indirect measures so that it was high time we do something directly in the public sector, especially after the failure of our measures taken back in February, with some of the public institutions being to blame for such failure for they didn't make the cuts in wages and personnel as they were supposed to, so that we need to act now in a more direct manner,' Berceanu explained.

The Minister said that his Ministry laid off 627 people, also by dissolving some of its companies, with other 5,000 employees from the national railway company having been sent into unemployment too, since the beginning of the year.


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