There will be no more tax increases next year if the Government and Parliament maintain the measures established at the coalition level and if these measures are backed by budget discipline, Prime Minister Ilie Bolojan declared on Monday.
He responded this way when asked whether he would keep his promise that taxes would not increase next year.
"If the Government and Parliament keep what we have established, then, as we have seen this month... at the end of November we had a deficit that guarantees us that at the end of December we meet the 8.4% target. If these measures that have been established are doubled by the savings that, as we have announced, we must make, by budgetary discipline, then, certainly, next year no taxes need to be increased. If we do not do this and we must not hide this, what we have done this year, we have practically pulled Romania out of a dead end, it means that instead of going in a normal direction, sooner or later we will end up with these debts again, with the high expenses that we have again bringing down the incomes and we will end up in such a situation again", the prime minister told Antena 3 TV station.
In addition to reducing the deficit, he pointed out, it is important for Romania to borrow less by increasing budget revenues.
"What we need to do in the short term is not just the idea of reducing our deficit, which is a target that tells people nothing and does not interest them. In fact, we need to continue borrowing, because this difference between expenses, which are higher than income, must be covered by loans. As long as we do not reduce this difference, to borrow less, we pay a lot first and, second, we have expensive interest rates. At the moment when Romania is a country that is predictable, that is, if you set a deficit target, and it reaches it at the end of the year, our interest rates decrease, decreasing the volume of credits and decreasing interest rates. It is a double effect that allows us to invest the money saved, to invest in development, to index salaries and pensions in real terms. That is what we need to do. If we respect these things, I am convinced that the trajectory for next year is good and there is no longer any question of tax increases," explained Ilie Bolojan.
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