ECONOMY FINANCE&BANKING

PSD’s Adrian Dobre: February’s budget execution shows governance platform is viable

The budget execution registered in February shows that the governance platform is viable and is starting to generate positive effects in the economy, PSD Spokesperson Adrian-Marius Dobre, who is also secretary of state within the Labour Ministry, stated on Wednesday.

“The economic data registered in February contradict all the alarmist messages coming from those who were criticising the income hikes and the tax cuts. As we can see, the economy does not work per an accountant’s mentality, as the critics of PSD’s platform had suggested. The hiking of the population’s incomes and the cutting of taxes do not necessarily mean less state budget revenues. In February, we register a year-on-year growth of 4.5 percent in the consolidated budget’s revenues, despite eliminating the special constructions tax and another 102 taxes and lowering the excise taxes. Similarly, VAT revenues grew by 2.5 percent in February, despite lowering this tax by one percentage point, from 20 to 19 percent,” the PSD Spokesperson pointed out in a press release remitted to Agerpres.

Adrian Dobre pointed out that several important private investments have been announced since the start of this year, which proves that the governance platform is seen with confidence by the business sector and the hiking of the minimum salary has not deterred foreign investors, contrary to the claims made by those criticising the governance platform.

“Serious investors are not looking only at the minimum salary’s level. They are looking for a friendly fiscal environment and a well-qualified labour force. Since the start of the year, the number of labour contracts has grown by 44,000, and several foreign companies active in the auto industry, energy and retail sector have announced important investments that will gradually replace the lohn which was based on exploiting Romanians paid with extremely low salaries. Thus, we are starting to have a higher number of better-paid jobs, including in the private sector, which means more Romanians in the middle class, just as we planned during the elections campaign,” the PSD representative emphasised.

According to him, after registering a slump in January, VAT revenues grew by 2.5 percent year-on-year in February, namely from RON 3,456 million to RON 3,541 million Overall, in February 2017, state budget revenues grew by RON 681 million year-on-year, from RON 15 billion to RON 15.68 billion.

“Likewise, the revenues from income and salary taxes grew by 1 percent in February, from RON 2,021 million to RON 2,042 million, while revenues from property fees and taxes grew by 0.2 percent, from RON 491 million to RON 492 million. The highest hike was registered by revenues from insurance contributions, namely 15 percent, from RON 4,551 million to RON 5,225 million,” Dobre pointed out.

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