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Bucharest
January 23, 2022
BUSINESS ECONOMY

PM Ponta: It’s high time for measures to support business

It is now high time to take measures that support the business environment, create jobs and raise the living standard, says Prime Minister Victor Ponta on his Facebook page.

“We may now take measures that are supporting the business environment, create new jobs and raise the ordinary peoples’ living standard! If not now, then when? Let us not lose this opportunity built in three years of work (how could someone who knows these official data be so ignorant or villain to say that Romania is like Greece),” the Prime Minister wrote on Friday on his Facebook page.

His reaction follows the Finance Ministry’s announcement of a 4.2 billion lei end-June budget surplus.

According to official data released on Friday, Romania’s consolidated general budget has closed the first half of 2015 with a 4.2 billion lei surplus, which is 0.6pct of the Gross Domestic Product, as against a 3.5 billion lei deficit, namely a minus 0.5pct of the GDP, recorded at the same date in 2014.

The revenues of the consolidated general budget, worth 110.6 billion lei, representing 15.8pct of the GDP, were by 10.2pct higher in nominal terms as compared to the same period of 2014.

According to the MFP data, year-on-year growths were recorded in the VAT receipts (18.3pct), the income tax (14.2pct), non-fiscal incomes (11.1pct) and excises (8.6pct).

The cashing from social insurance contributions only dropped 1.3pct as against H1 2014, being influenced by the 5pct cut of the contributions at the employers, as well as the increase by 0.5pct of the contribution rate to the pensions’ second pillar (the mandatory private pension – editor’s note) in 2015.

At the local administrations’ level, growths were recorded as compared to 2014 in property taxes and fees by 3.4pct, in taxes on goods’ utilization by 7.5pc, and in non-fiscal incomes by 1pct.

The expenditure of the consolidated general budget, worth 106.4 billion lei, have increased in nominal terms by 2.5pct as compared to the same period of the past year, yet they have diminished by 0.4pct as weight in the GDP.

Structurally, on the main titles of expenditure drops were registered in the expenses with goods and services (2.4pct). A significant drop was recorded in the interest rates expenditure (7.9pct) as a result of payments seasonality and decrease of the T-bonds’ profitability.

In parallel, a noticeable year-on-year increase by 27.8pct was seen as regards the expenditure with the projects funded by external grants.

The investments’ expenses, including the capital expenditure, as well as those dedicated to the development programmes with domestic and external financing, were worth 9.6 billion lei, meaning 1.4pct of the GDP, in nominal terms; the level was equal to the one recorded in the same period of 2014.

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