Preliminary assessment of the third payment request of Romania (2024)

the rules of legislative technique for the drafting of legislative acts.

Government Emergency Ordinance No. 187/2022 amends the existing regulatory framework in the area of public investment to ensure multi-annual budgetary planning for the significant public investment projects and to have an ex-post evaluation of expenditure reviews made by the Fiscal Council.

Specifically, Article II(3) of Government Emergency Ordinance No. 187/2022 establishes that public investment programmes must be presented in the draft budget as an annex to the budget of each lead authorising officer. These investment programmes must include significant investment objectives/projects which are to be presented with commitments and budgetary appropriations until their completion. Article II(5) of Government Emergency Ordinance No. 187/2022 further establishes that the lead authorising officers must annually present the public investment programmes annexed to their budget. By requiring the annual presentation of public investment programmes, including commitments and budgetary appropriations until the completion of projects, Government Emergency Ordinance 187/2022 ensures multi-annual budgetary planning for the significant public investment projects.

Article III(1) of Government Emergency Ordinance No. 187/2022 tasks the Fiscal Council with carrying out an ex-post evaluation of the analysis of expenditure incurred by the Ministry of Finance and the Chief Authorising Officers (i.e. an expenditure review) in accordance with the multiannual strategy, starting with the 2024 budget.

The new regulatory framework shall amend:

• - Law No nr.500/2002 on public finances, as amended, to lay down criteria and conditions for the

budgetary construction of multiannual significant public investment projects, in particular expenditure on significant investment projects, so as to secure financing until their completion

Article II of Government Emergency Ordinance No. 187/2022 amends Law No. 500/2002 on public finance as follows:

Article I(8) of Government Emergency Ordinance No. 187/2022 defines significant public investments. Article I(12) of Government Emergency Ordinance No. 187/2022 states that the principles and criteria for assessing and prioritising significant public investment projects are set out in its annex, which forms an integral part of the Government Emergency Ordinance. The Annex to Government Emergency Ordinance No. 187/2022 includes a list of criteria for assessing and prioritising new projects and for evaluating and prioritising projects further. Criteria include, among others, the advancement of the project in terms of implementation and the estimated period for completion. These provisions constitute the criteria for the budgetary construction of significant public investment projects which are multi-annual, in particular expenditure on significant investment projects, so as to secure financing until their completion.

Article II(3) of Government Emergency Ordinance No. 187/2022 states how significant investment projects shall be presented, with commitment and budgetary appropriations until their completion, therefore being multi-annual and securing financing until their completion. In Article II(10) the Government Emergency Ordinance No. 187/2022 establishes that a budgetary proposal for significant public investments prepared by the Chief Authorising Officer has to determine the commitment and budgetary appropriations for the year for which the budget is drawn and the following two years. Article II(11) provides for quarterly progress reports, whereas Article II(6) and (7) define the methodological role and powers of the Ministry of Finance concerning the budget