Romanian Finance minister Gheorghe Pogea, together with state secretaries Gheorghe Gherghina and Gratiela Iordache discussed on Tuesday about the lump tax and the IMF agreement. Pogea talked about the budgetary execution in the first part of the year.

Follow the most important declarations in the article.

"We plan to organize detailed presentations to insure transparency regarding the general consolidated budget and other fiscal measures to offer detailed explanations", Pogea said.

  • the deficit of the general consolidated budget is 1.56% of GDP, representing 8.28 billion Lei
  • revenues registered a decrease by 6.2% compared to the same period, last year
  • spending amounted to 46 bilion Lei, a 14.2% increase
  • in the first two months of the year industrial activity dropped by 11.6%
  • even if the constructions sector is stalling, in the first two months of the year, residential constructions had a comeback, registering 3.7% over last year's numbers
  • the main revenues that decreased: tax on profits; VAT revenues; however, there's an increase in the revenue tax

budgetary modifications

  • the most important thing for Romania is that the country's credibility rests on the macroeconomic perspective. The measures taken will consolidate public finances
  • because there is a time of crisis, measures are exceptional and most of the times, unpopular
  • we adjust spending to accommodate a deficit financing of 4.6%
  • the measures will allow to balance spending with investments: 38 bullion Lei will be allocated to investments
  • public investments are the no. 1 priority of the Government

European funds

  • we accelerated contractual procedures to speed up the process
  • pre-accession funds: 3.7 billion Lei, post-accession funds 8.2 billion Lei; how the ministries will benefit:
  • Transports ministry: 7.6 billion Lei
  • Environment ministry 2.4 billion Lei
  • Education ministry 2.9 billion Lei
  • local budgets 12.4 billion Lei

The lump tax

  • the 16% tax on profits still stands. We address those companies that alluded taxes in the economic boom period
  • we will not increase fiscal burdens but we wish that companies could pay up their taxes correctly. We negotiated with union representatives and adopted the minimum tax installments at their proposal
  • we do not plan to increase taxation, this is a respect gesture towards honest tax payers