Ionut Dumitru, Fiscal Council: We might reach the highest inflation in Europe next year

The over-excise duty on fuels will lead to chain reactions of price hikes, the Chairman of the Fiscal Council, Ionut Dumitru, warned, informs. Dumitru contradicted the government’s optimism that the price of fuel will not increase, adding that inflation might get out of control following the price increases for electricity, saying inflation might reach 3.5% next year, the highest level in Europe.

“It’s unavoidable, the price of fuels will increase. A supplementary tax will be transferred to the final consumer,” Ionut Dumitru said.

“Following the price increases – it was a surprise the increase of electricity price – they will fuel inflation up to 2.2-2.3% this year and probably to 3 or 3.5% next year, one of the highest in Europe,” Dumitru said.

On the other hand, the government decision on split VAT will hinder the cash flow between companies, will not be effective, he said, adding that the main problem is related to the companies which do not declare and pay the VAT.

Dumitru also explained that in the first half of the year, the budget revenues were by RON 5 billion lower that the anticipated level. Concomitantly, the public expenditures have increased and this is the reason for which countless investments have remained projects.

budget revenueschairmanelectricityEuropeexpendituresFiscal CouncilfuelsinflationIonut Dumitruover-excise dutyprice hikessplit VATVAT
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