The cabinet of ministers in Bucharest will adopt the first austerity measures aimed at reducing Romania’s budget deficit. The measures were discussed during a government meeting and include the reduction of certain allowances, reports IPN.
“The package of fiscal measures to reduce expenses will be adopted next week”, declared Ilie Bolojan during a press conference at Victoria Palace.
At the same time, the Romanian Prime Minister mentioned that “there are aspects related to the education sector, it’s hard to carry on with this deficit. We have developed a scholarship package for students worth 188 million lei across the country and we have reached almost one billion lei in three years”, “we can no longer sustain the state’s expenses at this level and with this investment budget. We need to work on increasing revenues, by improving collection, combating tax evasion, eliminating exceptions, but we are put in the situation to prepare a package of fiscal measures”, Ilie Bolojan specified.
Furthermore, the Chief Executive from Bucharest stated that “by next week, state-owned companies and authorities under the Executive’s subordination will be inventoried” and he specified that “the approval of institutional budgets will be conditional”.
Regarding the auctions, the Government has agreed on a six-month moratorium, until the end of the year, which involves the suspension of initiating new auctions or interrupting those that have started, but no bids have been submitted and have not already been awarded. It is “only about projects funded by the Romanian state executive and are not related to European funds”, the Prime Minister clarified.
Other measures announced by Ilie Bolojan refer to the increase in excise duties on alcohol and fuel, additional taxation of capital, on banks or gambling, as well as the restructuring of VAT on two thresholds.
