Premium
Finance Minister Marcel Bolos said on Thursday that it's a fact that Romania's five-month budget deficit stands at 2.33 percent or 37 billion RON, noting that he is working on a plan of fiscal measures to ensure that the budget deficit risk is properly managed and the pledged year-end target of 4.4 percent of GDP is maintained.
"We cannot just sit idly by, because a 2.33 percent budget deficit five months into the year is nothing to toy with and, ever since I took over office I have been focusing on this plan of measures which will be agreed upon by the ruling coalition, so that we can properly manage the risk of budget deficit," Bolos said at the headquarters of the National Liberal Party.
He added that a proper management of the budget deficit is in Romania's best interest, for investments to not be affected and for "closing the budget year with the deficit target committed to" before the European Commission, of 4.4 percent of GDP.
Bolos explained that the budget savings hoped for following the application of this plan will be determined when each scenario and its budgetary impact is assessed.
"It would be unfair to tell you now what measures are included in the blueprint plan (...) and then not to implement them. Moreover, we would cause panic among taxpayers. It is not normal towards them, but it is a certainty that this plan must be implemented," Bolos said.
He also noted that the calculated impact of the repeal of the cumulative collection of pension and wage is a significant one - 2.4 billion RON, while the impact of the overhaul of special pensions is staggered over time.
"The calculated impact is staggered over time, but we are interested in the immediate effect, that of reigning in the budget deficit. We cannot rely on this measure for our deficit-cutting target for 2035, the impact is an insignificant 0.5 percent of GDP. I told you, it's a progressive effect, but we are interested in the present so that we can carry out investments with European funds," the Finance minister said.
