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Last year, investment expenses were 5% of GDP, a level similar to that recorded in the previous year, but under the conditions of a nominal GDP growth of 11.6%, according to the 2021 Annual Report of the Fiscal Council.
The nominal increase compared to the previous year was 6.1 billion lei, the advance being due to projects with financing from non-refundable external funds post accession (+6.9 billion lei), sources from the internal economy being lower by about 1.3 billion lei compared to 2020.
"In the context of the significant volume of European funds intended for investments from which Romania benefits, the increase in public investments through an improved absorption of EU funds is essential to eliminate infrastructure gaps, simultaneously with the increase in the quality of programming and implementation of investment projects," the report states, Agerpres.ro informs.
Considering the record of limited progress regarding the reform in the field of public investment management, the Fiscal Council pleads for increased transparency and a better prioritization of public investments, streamlining the process of allocation and spending of public money, increasing investments in research, development and innovation, in physical and digital infrastructure.
"In this sense, achieving a much better absorption of European funds from the 2021-2027 financial year and attracting additional resources through the Recovery and Resilience Mechanism are prerequisites for the significant increase in public investment expenditures in the coming period. The implementation of the reforms foreseen by the National Plan of Recovery and Resilience (PNRR) can support the dynamism of the investment process, allowing a higher rate of economic growth in parallel with the adjustment of the budget deficit, as well as the achievement of budget consolidation," the quoted source mentioned.
