The budget was approved with 234 votes in favor and 170 against. The country’s president must now sign the bill into law.
While opposition social-democrats had their cost-raising amendments rejected and called it a budget of austerity, liberal prime minister Florin Citu said the budget was by no means small. He said it was focused on investments and aimed to force reform in the local and central administration.
Romanian finance minister Alexandru Nazare said the budget was balanced and realistic.
“Spending is growing, wages won’t be lowered, and we’re not raising taxes,” said Nazare.
Public sector wages, which account for 26% of spending, will be frozen at last year’s level. Romania had around 1.25 million public sector employees at the end of 2020, representing 22% of total employee numbers in the country.
The budget bill estimates revenues growing by 13% compared with 2020 and spending growing by 5%. Romania had a budget gap of 9.8% of GDP in 2020.
The government, which plans to gradually adjust its finances to go back to the EU deficit limit of 3% in 2024, sees GDP growth at 4.3% in 2021.