President Klaus Iohannis said on Monday that the Social Democratic Party (PSD) "is mortgaging the country's future" and is incapable of keeping public finances in order.
"After a year and a half of the PSD governance, already, with this highly controversial phase of so-called wage increases, we do not see any roads, motorways, schools, hospitals, anything. On the other hand, people are wondering where this money came from for some raises, and if we look closely, the story is a sad one. The PSD is actually mortgaging the country's future, it increases wages and pensions, and neglects important investment in infrastructure and investments needed for development in general," Iohannis said at Cotroceni Presidential Palace.
"From a fiscal-budgetary standpoint, the national budget is under huge pressure. Against the background of total spending rising by more than 22 percent as compared to last year, this pressure should have been mitigated by a consistent, visible effort to increase revenues, to increase the receipts therefore, which did not happen at all. On the contrary, the budget execution shows that the revenues have not reached in any chapter the level in the programme (...) presented by the Government itself. It shows something sad: PSD is incapable of putting public finances in order, and after three prime ministers and the same number of heads of ANAF [the National Agency for Fiscal Administration - ed.n.] the most visible effect is the uncertainty, the lack of predictability, as a whole, a more and more expensive behavior for the Romanian taxpayer," the head of state said.
"As you know, the PSD proposed to the Romanians, on the one hand, the lowering of taxes and taxes - an action started two years ago with the VAT decrease, on the other hand they proposed a strong increase in budgetary expenditures for wages, for pensions, for motorways they said, for schools they said. For economists or for those interested, this approach has produced surprise. It is a kind of economic magic that was proposed by the PSD. Decreasing taxes, increasing wages and the achievement of all the other things is an equation that can hardly be carried through and we really have to see how long this illusion created by PSD will last," Iohannis said.
He reiterated that PSD's wage increases have achieved a "rare counter-performance" in the sense that those who have had their salaries increased are dissatisfied.
"A 25 percent increase in public sector wages was promised, but it remained on paper, because through an accounting maneuver, CAS spending was transferred from the employer to the employee and this increase was thus practically canceled, the head of state added.09:38pai nu intelegd e ce Alexandra, 09:38President Iohannis: PSD is mortgaging country's future09:38mersi frumos
President Klaus Iohannis said on Monday that the Social Democratic Party (PSD) "is mortgaging the country's future" and is incapable of keeping public finances in order.
"After a year and a half of the PSD governance, already, with this highly controversial phase of so-called wage increases, we do not see any roads, motorways, schools, hospitals, anything. On the other hand, people are wondering where this money came from for some raises, and if we look closely, the story is a sad one. The PSD is actually mortgaging the country's future, it increases wages and pensions, and neglects important investment in infrastructure and investments needed for development in general," Iohannis said at Cotroceni Presidential Palace.
"From a fiscal-budgetary standpoint, the national budget is under huge pressure. Against the background of total spending rising by more than 22 percent as compared to last year, this pressure should have been mitigated by a consistent, visible effort to increase revenues, to increase the receipts therefore, which did not happen at all. On the contrary, the budget execution shows that the revenues have not reached in any chapter the level in the programme (...) presented by the Government itself. It shows something sad: PSD is incapable of putting public finances in order, and after three prime ministers and the same number of heads of ANAF [the National Agency for Fiscal Administration - ed.n.] the most visible effect is the uncertainty, the lack of predictability, as a whole, a more and more expensive behavior for the Romanian taxpayer," the head of state said.
"As you know, the PSD proposed to the Romanians, on the one hand, the lowering of taxes and taxes - an action started two years ago with the VAT decrease, on the other hand they proposed a strong increase in budgetary expenditures for wages, for pensions, for motorways they said, for schools they said. For economists or for those interested, this approach has produced surprise. It is a kind of economic magic that was proposed by the PSD. Decreasing taxes, increasing wages and the achievement of all the other things is an equation that can hardly be carried through and we really have to see how long this illusion created by PSD will last," Iohannis said.
He reiterated that PSD's wage increases have achieved a "rare counter-performance" in the sense that those who have had their salaries increased are dissatisfied.
"A 25 percent increase in public sector wages was promised, but it remained on paper, because through an accounting maneuver, CAS spending was transferred from the employer to the employee and this increase was thus practically canceled, the head of state.
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