President Klaus Iohannis criticised the Government on Thursday, arguing that it behaves "like a man gaining increasingly more, yet borrowing increasingly more," calling this behaviour counterproductive.
"A few months ago, when I invested this Government, I had one request, clear and simple: I asked them to quit this fiscal-budget hopping. It didn't quite go like this. (...) The Government behaves like a man gaining increasingly more, yet borrowing increasingly more. (...) It is a counterproductive behaviour," Iohannis said at the Cotroceni Presidential Palace.
He maintained that although Romania is going through a period of economic growth, there are certain weak points.
"Growth relies mainly on consumption and such growth is generally regarded as sustainable, long-term growth, the investment part is missing. The lack of investment is a worrisome sign and we are talking about investments in the private economy. Foreign investments have dropped 20 percent as compared to the same interval last year. Public investments have gone down. Public investments have a very important role in balancing the economy. They have decreased by over 20 percent as compared to the same period last year, when they weren't quite great anyway," Iohannis pointed out.
The head of state deemed the situation of the tax revenues as awkward.
"The economy is growing but the tax revenues are dropping. Instead of having more money to the budget, we actually have less money to the budget," Iohannis further said.
He provided the example of the tax receipts.
"This year, the collection [of tax revenues - ed.n.] hit a historic low of 25 something percent of the GDP [Gross Domestic Product, ed.n.] as compared to what we intended a few years ago, of 35 percent. 25 percent is extremely low and this should worry all of us. It is indeed a paradox. A record growth of the GDP and also a record rise in debt," the head of state added.
AGERPRES .
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