Prime Minister Ciolos’s draft budget for 2017: realistic growth of over 4%, deficit below 3% of GDP

de Victor Bratu | 5.12.2016 .

Dacian Ciolos, propus de Romania pentru functia de comisar european pentru Agricultura si Dezvoltare Rurala, este audiat in Comisia de agricultura a Parlamentului European, in Bruxelles, vineri, 15 ianuarie 2010. Audierile din comisiile Parlamentului European au inceput, luni, la Bruxelles, urmand ca votul in plenul Parlamentului European sa fie dat pe 26 ianuarie 2010. STEFAN MICSIK / MEDIAFAX FOTOThe budget draft prepared by the Ministry of Finance is based on an economic growth of over 4% and a budget deficit below 3% – figures were announced Sunday by Prime Minister Dacian Ciolos (foto) at Digi 24.

Prime Minister Ciolos announced in the autumn that the Government will not adopt and not send to the Parliament a draft budget for 2017, as the task will remain for the new government and parliament elected after December 11th.

We continue to go with a realistic economic growth of over 4% based on our analysis and forecasts and a budget deficit below 3%. We have not considered any elements or laws passed by the Parliament that are not yet in place or are challenged on the Romanian Court of Accounts,” said Prime Minister Dacian Ciolos Sunday.

This last statement refers to the tax cuts and salary increases decided in the Parliament in the recent months, which have a total impact of approximately nine billion lei.

For the next year, the forecasts of the international financial institutions indicate an economic growth below 4% for Romania. The most optimistic are the experts from the International Monetary Fund, who announced a level of 3.8%, and the most sceptical are the experts of the European Commission – 3.5%.

All experts from Brussels have calculated that, against the background of lower budget revenues, Romania would be, along with Spain, the state with a deficit that will exceed 3% of GDP.

“Romania will likely have the lowest revenues from tax in its history of 20 and something years, according to the estimates of the European Commission, of 25.4% of GDP. The major challenge that any government will have in preparing the 2017 budget is based on this reality,” said the Chairman of the Fiscal Council, Ionut Dumitru, two weeks ago, at a seminar held at the offices of the Central Bank.

Premise: from January 1, VAT will decrease from 20% to 19%, according to the Tax Code. Also, the “pole tax” and extra duty on fuel will disappear next year. All three measures will cause a large budget gap of over seven billion lei.

Publicat la data de 5.12.2016 .

Lasa un comentariu


SIMILAR ARTICLES

Adrian N Ionescu

Ministry of Finance has sold euro bonds worth one billion euros on foreign market

The Ministry of Finance (MFP) placed euro bonds worth EUR 1 billion on the foreign market by reopening the issue with the maturity of 10 years launched in April this year The issue has been placed with a 2375% coupon at a yield of 2,114%, lower than the one of the initial issue in April (2411%), following "the decrease of the related margin of Romania’s credit risk to the lowest level for ...
Read more »

Adrian N Ionescu

European Commission’s announcement to Government and Parliament: Gas transactions market cannot be monopolized by OPCOM

Romania risks the infringement procedure if the Parliament adopts definitive amendments to the Emergency Ordinance 64/2017 on the natural gas market, which provides for the trading of 70% of its volume only on the state-controlled OPCOM market The punishable amendments, recently approved by the Chamber of Deputies' Committee for Industries, could violate the fundamental freedoms laid down in ...
Read more »

Adrian N Ionescu

Ford launches production of EcoSport in Craiova. Total investment in Romania reaches over EUR 1.2 billion

Ford officially launched the production of the EcoSport SUV at the plant in Craiova, raising total investments in Romania to about EUR 12 billion, since the takeover of the factory in 2008 The number of employees will increase by nearly 1,700 to 4,300 people by the end of the year, exceeding for the first time the number of employees in the moment of the takeover Ford plant in Craiova will ...
Read more »

Adrian N Ionescu

ANAF has repealed procedure for cancellation of VAT code for inactive companies

An order by the ANAF President amends the regulations for cancelling the registration for VAT purposes, respectively repeals the procedure for the cancellation of the VAT code for the inactive companies The provisions in question are included in OpANAF 2899/2017 on approving the procedure for the ex-officio change of the VAT related tax vector, as well as the template and content of some ...
Read more »

Adrian N Ionescu

Investment of the poor: MFP sells one-lei treasury bonds to population and money will be blocked until maturity

The Ministry of Public Finance (MFP) wants to raise money to the budget, leu by leu and says that treasury bills, whose issues have already been announced, will have a nominal value of 1 RON The amount is a real premiere The financial instruments will be issued quarterly, on short terms, through the State Treasury's operating units, and will not be listed on the stock exchange, which means ...
Read more »

MAINS

Prime Minister Grindeanu about 2017 budget: 5.2% economic growth, 815 billion lei GDP, 253 billion revenues

Prime Minister Sorin Grindeanu said on Sunday evening on Romania TV that the budget deficit in 2017 will fall within the set target of 3%, ... Read more

Back to the lesson of 2008-2014! Essential viewpoints about the type of growth we choose

The National Institute of Statistics announced the final value of GDP for 2014 at 668,143.6 million lei, in current prices, representing a growth rate of ... Read more

Trade deficit in 2016 is close to 10 billion euros, driven by imports of chemicals, fuel and food

The trade deficit in the first eight months of this year was EUR 6,133.8 million, about 28% higher than the same period of the last ... Read more

”Digital-Schweitzer” Romania: IT specialists explain why citizen is stuck between super computerized institutions

Ciolos government promised a revolution in reducing state bureaucracy, official emphasis being put on digitization and electronic communication, institutions being required to be transparent. This ... Read more