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August 5, 2021

IMF, EC appreciate Romania’s “very good” results

The IMF and the European Commission appreciate the “very good” results that Romania obtained as part of the stand-by agreement, Finance Minister Gheorghe Ialomitianu stated for Mediafax. He added that budget revenues from VAT covered the payment of arrears and allowed the country to attain the deficit target of 6.5 per cent at the end of 2010.

According to the Ministry of Finances, revenues from VAT, excises and non-fiscal sources contributed the most in the hiking of budget revenues last year, a hike that was tempered by the drop in revenues from income taxes, profit taxes and social insurance contributions. At the end of last year the budget deficit stood at RON 33.3 bln, namely 6.5 per cent of GDP, below the RON 34.6 bln upper limit set by the agreement with the IMF. For 2011 the authorities plan to cut down the budget deficit to 4.4 per cent of GDP.

On the other hand, budget revenues totaled RON 168.6 bln, 7.2 per cent higher year-on-year in nominal terms. Budget revenues grew in the case of taxes on goods and services – VAT (+14.3 per cent) and excises (+11.5 per cent) – and of non-fiscal incomes (+18.5 per cent). Although on a downward trend, the year-on-year discrepancies were significant in the case of the income tax (-3.2 per cent), profit tax (-4.9 per cent) and social insurance contributions (-4.5 per cent).


Finance Minister Gheorghe Ialomitianu stated yesterday, before PDL’s BPN meeting, that Romania has enough funds with which to pay salaries and pensions. “We have, we have enough. We have for next year too because the economy is working. We have money, sure. Of course we want to come out of recession and I believe there are the premises of doing that this year,” the Minister said. Asked what those premises are, Ialomitianu mentioned “budget revenues and exports,” but also the fact that this year there are more funds for investments “in order to ensure an economic multiplier effect.”

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