February 22 (SeeNews) - Romania's president Klaus Iohannis said on Friday he is refusing to sign the 2019 budget bill into law and is referring it to the constitutional court.
"It is an unrealistic, overvalued, overdue budget," Iohannis said in a televised press conference broadcast by local TV station Digi 24.
The budget projects economic growth of 5.5% and targets deficit equivalent to 2.76% of the gross domestic product (GDP). GDP in 2019 is estimated at 1.022 trillion lei ($246 billion/215 billion euro), revenues are projected at 341.4 billion lei, or 33.4% of GDP, and expenses are projected at 367.5 billion lei, or 35.9% of GDP.
"With this budget, [the ruling Social Democratic party] PSD seeks to address the government's multiple failures. They called it an investment budget, and that's their first big lie. [...]. They are not looking to make investments because they have no money," he added.
The budget sees investment spending at 47.2 billion lei in 2019, or 4.62% of GDP.
According to Iohannis, some of the provisions of the budget bill are unconstitutional.
"Fundamental rights are being violated, the law on the fiscal council has been ignored, the principle of decentralisation is being undermined," Iohannis added.
Iohannis has also criticised the budget for the planned increase in state subsidies to the parties represented in parliament, whose main beneficiary is PSD, while health, education and infrastructure are under-funded.
The 2019 budget draft was approved by parliament on February 15.
The lower chamber of Romania's Parliament adopted an amendment raising the deficit target to 2.76% of GDP from the previous target of 2.55% of GDP. The amendment was submitted by National Liberal Party (PNL) in order to hike child allowances this year from 84 lei ($20/17 euro) to 150 lei.
(1 euro=4.7559 lei)