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The measures to increase salaries and pensions, along with those of fiscal relaxation, promised by the new government for this year, will have a negative impact on the budget of RON 8.9 billion, Fiscal Council shows in a financial analysis on Thursday.
Budget expenditures will grow this year by RON 5.7 billion, mainly due to pensions’ and salaries’ increases and budget revenue will decrease by about RON 3.2 billion, due to reducing taxes.
According to Fiscal Council, in terms of expenditures, the biggest addition will be generated by the increase of the pension point to RON 1,000, a measure that will come into force on July 1, and will generate additional budget expenditures of RON 2.6 billion for this year.
Regarding the revenues, the biggest minus at receipts will come from the elimination of the 102 non-fiscal taxes and tariffs, of which the best known are the environmental stamp and radio and TV fee, a measure that will take effect on February 1, and will bring losses of RON 1.5 billion on the budget.
Fiscal Council has done this impact study upon a request of the Presidential Administration.
In his turn, economic analyst Aurelian Dochia says that the budget deficit increase, as a result of the measures announced by Grindeanu Gov’t, means an increase in interest rates on which the state borrows, mediafax.ro informs. Thus, Romanians will pay a bill increasingly higher. Also, the country risks sanctions from Brussels.
Sorin Grindeanu had on Wednesday his first meeting as premier with President Klaus Iohannis and, following the discussions, the head of state pointed out that it’s very important to have a sustainable budget for 2017, solid, which can take into account some very important data.
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