CAS cut by 5 pc starting July – main topic of discussion with the IMF

The 5 percent reduction of the social security contributions (CAS) starting July is the main topic of discussion with the IMF. The IMF mission analyses the budgetary execution in the first 5 months of next year and the prospects of economic growth and budgetary incomes. PDL deputy Andreea Paul said yesterday that the IMF, WB and EC delegation demanded to see the compensatory measures, respectively spending cuts or new taxes, that will be enforced once the CAS is reduced, but the Executive did not prepare any such measure. She claimed that the fiscal space which the “troika” gave to the Ponta government for the absorption of European money was not used and the sums provided by the EU in the first 4 months to the public budget diminished by 18 pc. Andreea Paul added that no other measure about maintaining the VAT was announced during talks, given that the VAT for bread was temporarily reduced to 9 pc.

In his turn, the vice-president of the Budget-Finance Committee of the Chamber of Deputies, Viorel Stefan announced after the meeting with the IMF delegation that the international financial institutions have no problem with the measure of reducing the CAS and appropriated it 100 pc, so the discussions with the Ministry of Finance will refer to the measures that will secure the sustainability of enforcing the CAS reduction
The minister of Economy, Constantin Nita yesterday declared himself convinced that the International Monetary Fund will accept the government’s proposals to lower the CAS and exempt from tax the reinvested profit. “I don’t expect any problems to appear,” he said at a forum on energy.
The head of the IMF delegation, Andrea Schaechter yesterday turned down the proposal made by the vice-president of the Budget-Finance Committee of the Chamber of Deputies, Viorel Stefan, about holding the talks between the delegation of international financial institutions and the members of the budget finance committees in presence of the press. Andrea Schaechter said that she prefers the meeting with the lawmakers of the Budget-Finance Committees to be held the same way they were in the past, without the press. She explained that the IMF delegation is just starting its mission, so she does not dare making suggestions or recommendations. The meeting between the Budget-Finance committees of the Parliament and the joint delegation of IMF, WB and EC was held at the Parliament Palace.

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