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ING: Budgetary deficit over 3% or broader taxation base!

de     HotNews.ro
Miercuri, 11 iulie 2007, 0:00


The budgetary deficit will pass the 3% of the GNP limit during the following years in case the taxation base isn't enlarged, an ING report indicates on Wednesday, as quoted by NewsIn. The investments expected in infrastructure, the obligatory private pensions, the compensations for victims of the former Communist regime are the main issued that threaten to affect the budgetary deficit.

Even more, Romania will contribute in 2007 for the first time to the European budget, paying 1.1% of its gross national product.

"Given the fact than none of the major taxes grew this year, and considering that national investment program the Government prepares to launch, which would consume 38% of the GNP, we expect the budgetary deficit to grow over 3%, after the tax collection level in 2006", the ING report reads.

Doubling the state-paid pensions during the following years can not be supported without an increase in the budgetary income, the study comments, experts pointing at the VAT growth as the most plausible resource.

Experts also expect an increasing number of populist measures during the following years, but warn that these can't be supported without any growth in the taxation level.
























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