Gov’t tripled the money attracted from structural funds, PM Ponta said.
Premier Victor Ponta announced Saturday, at Bistrita, that a budget rectification will be operated in October, but of the kind ‘we take money from some and give to others,’ as the government has no “secret supply” of money, Mediafax reports. “Categorically, all salaries, pensions, essential things are covered and we will pay them without problems, but in the rectification we will take from some and give to others. Some will lose for others to gain,” Ponta explained.
He was asked by journalists if the mayors of Bistrita can hope to receive money in the budget rectification set for October. “There was not in the past, it is not today any secret deposit of money, available to the government. The money is collected as taxes and dues which we did not increase. We kept the 16 pc flat tax rate. We enforced a VAT reduction for bread, which we would like to expand (to other products), and there was also the main project for next year, which is lowering the labour taxation. As we cut (taxes), it is hard for us to tell that we will give extra money. The important thing is how it is used,” the prime minister explained.
Victor Ponta added that the government’s most important achievement in terms of additional resources available to the government this year is the fact that it tripled the money attracted from structural funds and unblocked all the operational programmes. “This means that projects continue to be submitted and financed. (…) In agriculture, we make advance payments this year too. This is where the supplementary resource can be found. As for the rest, economic growth generates more or less additional resources. What I tell everybody is that the money we have, the majority of it comes from European funds, and only little from taxes and dues, because we will not have – with a flat tax of 16 pc – the schools and hospitals of Germany, where taxes are 45 pc, or from Finland and Sweden, where taxes reach 50 pc. One cannot have small taxes, but high incomes like those which have big taxes. We must decide what we choose. And we chose that, for the sake of economic development, we keep taxation low,” Ponta added.
PM Victor Ponta also said Saturday at Bistrita that, in order to expand some investments, the government further has the needed cap, saying that he invited Leoni, a German producer of electric circuits for the auto industry, headquartered in Bistrita, to access state aid if it will expand. The premier was also asked if the government has money to grant state aid to the companies that make investments, saying that there are specifically allotted funds for state aid schemes, which cannot be used to other purposes.