Romanian PM: No New Taxes this Year!

Romanian PM, Mr. Florin Citu, wanted to emphasize a message which he’s been trying to deliver for some time: there won’t be introduced any new taxes during his mandate.

His message was delivered in a context when some analysts anticipate a tax rise in Romania, or the introduction of new taxes, following the need of the Government to decrease the budgetary deficit.

I saw in the public space being brought into discussion a long time commented subject, the one with the taxes. NO, we DO NOT introduce new taxes. To introduce new taxes in a time when the economy is under its potential is suicidal, you kill your economy.

Romanian PM Florin Citu on introduction of new taxes in Romania

Romania has a huge public deficit at the moment, of around 9%, and the Government has a difficult job from this perspective: to try and close this huge gap until the deficit gets back under 3% limit, as agreed with the European Commission. This year’s budget was drafted on a public deficit of 8.2%.

It’s not only that, but a huge public deficit also affects the country’s financial health, drastically diminishing the resources for public investments and offering no room for negotiation with the international creditors.

Florin Citu offered an alternative solution to the introduction of new taxes: digitalization.

Romania has resources for economic recovering, and the solution is not changing a man or two. The solution is the digitalization, a solution which I saw being applied in the European Union as well, and it is the solution to increase the collection on a long term. We can get to 3% deficit again through a smart strategy and we can do it with the money we have, but only if we manage the finances well.

Floring Citu, Romanian PM

The Romanian PM stated it clear: digitalization will lead to a better collection and this will further lead to more money for the public budget. This means more money for investments and less budgetary deficit.

How long will it take the public finances to do that? It can take from one year to more, but the important thing is the former minister of Finance, the current PM, decided to go on this strategy. It’s a long term bet, but it could be the winner here, especially in this context.

Photo: Gov.ro