According to data published by the National Institute of Statistics, Romania’s trade exchanges with Hungary, Poland and Slovakia caused almost 43% of the deficit registered… Mai mult›
European countries have quite diverse pension systems in terms of financing methods but basically based on two models, Bismarck and Beveridge. The former is mostly… Mai mult›
“Captivity effect”: Competition Council’s recommendations for institutions not to become dependent on providers who win tenders in IT and health sectors
Authorities are often dependent on a single vendor or distributor, mainly in the acquisition of software developed on demand and medical devices, is the conclusion… Mai mult›
The game is, of course, very complicated. But not necessarily from Romania’s point of view. Until the clarification, among the uncertainties of the future, of… Mai mult›
Romania of investments in a European context: On the list of declines, but still ranking in the first third of it
Last year, total investment at the national level (both from the public and private sources) in the EU member states amounted to almost EUR 3,100… Mai mult›
de Marin Pana , 29.1.2018
The figure is valid for 2016, but neither in 2017 did the institutions in charge exhausted the budget with investments.
The figure is much lower than in the previous year when it succeeded to recover above the five percent threshold. A critical threshold that it exceeded during the entire interval from 2006 to 2011 (see table)
- Investment as share of GDP
It can be noticed how the EU accession generated initially a relatively high interest for allocating public funds to investments. In the first two years after joining the EU and even in the first year of the economic crisis (indeed, also in the context of a sharp decline in GDP in 2009), the corresponding amounts exceeded 6%.
Unfortunately, over time, governments found it appropriate to cut investments, with the notable exception of 2015, the only year that got close to the good economic practices for financial stability and sustainable development of the country.
We remind that we had then a deficit of only -0.8% by the ESA standard and met the famous MTO – incidentally, it is less important whether the prime minister who held the office then knew what the English acronym for the medium-term objective means. The important thing is that we adjusted the structural deficit in a healthy way and we could have been the first in class.
However, instead of keep allocating public funds for the country’s development (to be read “motorways, schools and hospitals”, more simply explained), maybe also because the European money made available only for clear projects cannot be easily diverted anymore, we reversed the healthy trend and started to party with the money from the budget, while massively reducing the investments.
The figures provided by Eurostat also show in a nutshell and as clearly as possible that the sharpest decline in the allocations to public investment was also in 2016. Unfortunately, this practice continued in 2017 (including in the recent budget amendments, in the context of the difficulties in collecting the expected revenues and the hazardous commitments for wage and pension increases in the public sector)
… And 2017 …:
The figures on the budget implementation for the first ten months of 2017 show an increase (about seven billion lei above the disappointing results in 2016) in a year with amounts addressed to projects financed from non-reimbursable external funds, and a quite significant decrease in capital spending (about two billion lei below the same period of the previous year), but we should wait for the final result based on official European data.
- Annual evolution of public investment
- Annual evolution (% compared to the previous year)
… And 2018 …
To sustain public investments, in the draft budget for 2018, investment spending amounts to only RON 38.5 billion, which represents about 4.2% of GDP. That is, at least in statements and planned above the 2016 counter-performance, but still, the lowest percentage since 2006, even if this money is ultimately allocated.
Obviously, not enough compared to the needs that accumulated over time by failing to achieve major objectives such as the motorways to cross the Carpathians or regional hospitals where people would no longer die in large numbers because of the lack of medical equipment and in-hospital infections.Without referring to numerous figures and creating a dispute about including the European funds as a public investment just to get a better result in terms of share of GDP, we raise just one question:
How much do WE, the taxpayers, allocate from our OWN money (so that we can access THEIRS) to public investment? Is it more or is it less than 5% of GDP (to have a simple benchmark, already quite obvious in the history of recent years)? That is, we care about the country, the society where we live, and maybe we would like our children to live, or we just want to spend as much money as possible for momentary consumption.
Lăsați un comentariu
"We are pulling ourselves out of maps!": Business community’s solutions for infrastructure development
In the medium and long term, companies in Romania lose business because of disarticulated infrastructure; the country overall loses new investment, the state budget loses… Mai mult›
New Romania’s Agent at the EU Court of Justice: 32 years old, failed exams, a person supported by Olguta Vasilescu
The government agent at the EU Court of Justice, Razvan Horatiu Radu, was replaced by the Government by a decision of Prime Minister Viorica Dancila… Mai mult›
The European Commission asks Romania to urgently align the system of taxes collected on the car registration to the European one. The request is announced… Mai mult›
CCR President in a visit to Russia, despite that Ministry of Foreign Affairs has recommended not to make this visit
CCR President Valer Dorneanu is in Russia today, where he attends the Sankt Petersburg International Legal Forum, despite that MAE has recommended not to make… Mai mult›
List of black payments / Corruption in health sectors: Bribes - 25% of contract value, higher than in other fields
Romania is the European country with the lowest spending in the health sector. However, DNA statistics show that the bribe in this field is higher… Mai mult›
The Tax Code and Fiscal Procedure Code will be amended by the end of this year with a "fair and logical" approach without "populist" initiatives,… Mai mult›
President Klaus Iohannis was fined with 2,000 RON by the National Council for Combating Discrimination. CNCD President Csaba Astalosz says though he disagrees with the… Mai mult›
Romanian businesses control only 6.8% of the 78,181 groups of companies in Romania. There have been 78,181 groups of enterprises identified, out of which 5,311… Mai mult›
The London Stock Exchange Group (LSEG), the operator of London Stock Exchange, announced that it will open a business services centre in Bucharest through the… Mai mult›
NATO largest exercise in Black Sea in 2018: More than 2,300 troops from seven countries participate in Sea Shield 18
21 military ships, 10 combat aircraft, and a submarine participate between May 4-11 in Sea Shield 18, the largest NATO exercise organised on the southern… Mai mult›
"Emergency constitutional support": President Iohannis sends laws on judiciary to Venice Commission and asks Constitutional Court to wait for the answer
President Klaus Iohannis announced on Wednesday that he is referring to the Constitutional Court of Romania the Parliament's amendments to the three laws on the… Mai mult›
The International Monetary Fund (IMF) has revised upwards the Romanian economy growth forecast for this year, from 4.4% to 5.1%, according to the latest World… Mai mult›
Company insolvency, set on an upward trend in 2018, caused losses of RON 9.6 billion in 2017: ONRC statistics
The number of companies and authorized natural persons (PFA) which have declared insolvency increased by 19.31% in the first quarter of 2018 compared to the… Mai mult›
Herman Berkovits received in May 2014 the Key to the City from Mayor Sorin Oprescu Herman Berkovits, the personal doctor of Israeli Prime Minister Benjamin… Mai mult›
Deloitte Romania, at the request of the Romanian Banking Association, conducted a study for analysing the tax treatment of the sale of receivables and the… Mai mult›