Prime Minister Mihai Tudose stated on Monday, before Parliament, after the Liberals asked him to explain the current state of the Romanian economy, that the figures presented by national and international bodies show the economic reality in Romania, restating that the announced economic growth of 5.2 percent will be surpassed. Tudose answered the Liberals’ accusations concerning the lack of expressways and stated that a comparison between Transport Minister Razvan Cuc and his predecessor Ludovic Orban is pointless since “one can’t compare something to nil.”
“Every time PSD was part of the Government, it brought about well-being and a solid economy. The figures are saying this, and they’re not PSD’s figures but figures from reputed domestic and international bodies. Economic growth of 5.8 percent, the highest in the European Union, I believe nobody doubts it. If this says an economy is not working, please explain it. This is the best indicator of the proper functioning of the real economy, but also of the feasibility of the economic policies promoted. (…) The economic growth announced and included in the budget projection for this year was 5.2 percent. We apologise we’ll surpass it and it will be higher,” the Premier stated before Parliament.
Mihai Tudose pointed out that, in July alone, investments totalled 2.4 billion lei, twice the level of the monthly average registered in the first half of the year, and 33 percent higher than the level registered in the same month last year, this being a certainty that public investments will contribute to economic growth this year too.
At the same time, referring to the Liberals’ reproaches for the lack of textbooks for fifth graders, Tudose stated that this is the fault of the previous technocratic Government, the current Government being forced to implement the decision that the former Government took last year. Referring to the lack of expressways, the Premier added that a comparison between the incumbent Transport Minister and his predecessor Ludovic Orban is “pointless” because “one can’t compare something to nil.”
“At eight months, the deficit is 0.77, in contrast to the assumed deficit of 2.95. The public debt is 37 percent, the third lowest in the EU. The maximum margin is 60 percent. Pillar II – we all stated we won’t touch it. The money stays there. Fifth grade textbooks – I’m glad you’re concerned. All the crazy things, or a part of the crazy things that the Education Ministry is forced to implement were established last year. Including the famous sports class textbook. We also take this opportunity to thank you for this. A comparison with last year is sublime – now you’re talking about the fifth-grade textbook, last year you weren’t talking about any textbook because none was ready. The Cuc – Orban comparison is pointless, because one can’t compare something to nil. None of us drove on the Orban expressway. I don’t know why, but we haven’t found it. You’re crying on the topic of those who left the country. You used a figure – 200,000. In fact, it’s far higher. During the Ciolos Government,” Tudose concluded.
“Seven-month general budget revenues 9 percent higher than in same period of 2016”
Revenues to the general budget in the first seven months of 2017 were by 9 percent higher in nominal terms against the same period of 2016, Premier Mihai Tudose said on Monday.
“As regards the increase of the budget revenues, the first results are there for anyone to see. In the first seven months of 2017, (…) the revenues to the general budget worth RON 141.2 billion, which means 17.3 percent of the GDP, were 9 percent higher in nominal terms as compared to the same period of 2016. This is obviously the result of the money collection improvement by the National Tax Administration Authority (ANAF) and of the governing programme, in general. All the adopted budgetary and fiscal measures took into account Romania’s foreign commitments and those aimed at maintaining the economic indicators, including the assumed goal as a EU member state to limit the budget deficit to 3 percent,” Prime Minister Tudose told the plenary sitting of the Chamber of Deputies at the “Prime Minister’s Question Hour” where he was invited to present the state of the Romanian economy.
The head of the Government also referred to the absorption of the European funds, saying that the initial target will be exceeded.
“The absorption of European funds (…) pledged in the governing programme was EUR 5.2 billion. The forecast is that we are going to exceed it, if the pace is maintained. We have unlocked all the management authorities. As for the agriculture funds, at the beginning of the year we were Europe’s champions, exhausting all the funds available for 2017 by February,” Mihai Tudose specified.
Budget bill to reach Parliament in November
The 2018 budget bill will be lodged to Parliament in November, Prime Minister Mihai Tudose announced on Monday afternoon.
“The budget bill will be drafted and sent in time to Parliament in November, so we can start next year with the budget approved,” Tudose told the plenary sitting of Parliament
Prime Minister Mihai Tudose went before the Lower House on Monday to present the country’s economic situation, having been summoned before Parliament by PNL, for a debate titled “Tudose Government’s attack on the Romanian economy.”
PNL President Ludovic Orban announced as far back as last Monday that his party will summon Prime Minister Mihai Tudose before Parliament, in order for him to explain “the disastrous economic situation,” adding that the Liberals will use all parliamentary means to stop the activity of some ministers.
“At the first meeting in which we, PNL, can summon government officials before Parliament, we will summon Premier Tudose, for him to answer for the disastrous economic situation, the budgetary situation, the threats he launches every day against companies and against the active economic environment, and especially for the inept statements he has also made about the banks and the pensions’ Pillar II and in general about various issues of economic, fiscal and budgetary nature,” Ludovic Orban announced at the end of PNL’s Executive Bureau meeting.
Last Friday, on the first day of the new parliamentary sitting, PNL’s Lower House whip Raluca Turcan announced that Premier Mihai Tudose will come before Parliament on Monday, in order to present the exact state of the economy, of investments and of each ministry’s budget execution, and, likewise, to explain what sources of financing does the Government intend to use “because all expenditures committed cannot be covered.”
“Premier Tudose will come before the Lower House at the ‘Prime Minister’s Hour,’ in order to offer answers about the state of the Romanian economy. There are very many signs of concern generated by a series of public debates and information, some of them launched by Premier Tudose himself, which appear to be leading Romania toward a crisis similar to the 2008-2009 crisis,” Raluca Turcan stated.
She pointed out that at this moment we find ourselves in a situation that must be explained by the Head of Government, because there is economic growth but, at the same time, Romania has a growing deficit and its budget revenues are ever weaker.
“We have almost zero investments, almost zero European grants and expenditures that must be supported by something. Unfortunately, things are becoming fractured, because one can’t have both economic growth and also rising expenditures. Somewhere the money is being lost and the money must be found and must probably be justified by those who are currently ruling Romania,” Turcan pointed out.
Liberals’ Orban: PM must tell Parliament why we are running biggest budget deficit in recent years
Chairman of the National Liberal Party (PNL) Ludovic Orban told the Prime Minister on Monday “not to come to say gibberish” to Parliament, but give a clear answer as to why Romania is running the biggest budget deficit in recent years.
“I’m not allowed to attend the sitting. I can watch it on TV. This is what I’m telling Tudose: to not come to say gibberish, but give a clear answer as to why we are running the biggest budget deficit in recent years, why budget collections are by 5 billion RON smaller than forecasts, why unemployment went up in a period where the government is boasting economic growth, why the trade deficit is by 30 percent wider, risking to seriously harm the economic balance. Why is he coming with all kind of fiscal nonsense to upset the Romanian economy? Is this part of a plan to ruin the economy and throw Romania into an economic crisis?” Orban asked at the Parliament Palace.