| THE BUDGET DEFICIT: THE STATE OF PLAY 02/04/2010 |
| (2010-04-02) |
| Last updated: 2010-04-07 14:37 EET |
In an interview granted to our radio station, minister Vladescu explains that salaries and pensions are too big compared to the country’s economic performances. Vladescu went on to say that salary expenditures in the 2010 budget will exceed the allotted 9% of the GDP, while social expenses are expected to rise up to 12%. In the first quarter of 2010, Romania’s budget deficit stayed within the 1.1% of the GDP target, commonly established with the IMF. In the same period, budget revenues remained below the envisaged level.
The Romanian minister of finance gave assurances that for the time being the authorities in Bucharest do not intend to increase taxes or duties. Sebastian Vladescu:
VM Sound bite Vladescu: “For the time being we don’t have any plans to raise any tax or contribution. As it functions today, the system doesn’t need any adjustment; and if we manage to adjust the expenditures agreed upon with the IMF, it will not require a further tax rise.”
Vladescu has also referred to the country’s shabby infrastructure.
“Romania is hankering for investment as it has one of the least developed infrastructures in Europe. So, bridging the gap between us and the European average requires tens of billions euros worth of investments in the following seven to ten years. At this moment, we cannot afford to invest this money, because we have these previous pension and salary payment commitments.”
According to minister Vladescu, fighting tax evasion has become the Finance Ministry’s top priority.
“We have identified the main areas where tax evasion occurs. And we have already commenced procedures to tackle it. At this moment we are working on a modified legal framework to fight various forms of tax evasion, ranging from intra-community VAT evasion to bootlegging and cigarette smuggling.”
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2025-04-04
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