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Cristian Parvan, AOAR: The budget projected on a non-realistic growth of the industry share in GDP
The budget draft includes a budgetary deficit under 3% of GDP and an important growth of the contribution to the GDP of industry, Cristian Parvan, general secretary of AOAR says that the deficit will be kept by cutting down investments and the data regarding the growth of industry are non-realistic.
‘From my point of view,the growth from 0.6% of GDP to 1.4% of the industry is a big question sign as the domestic demand drops, thus the industy should grow on the basis of exports. When Europe and the world seem favour isolation and protection this is hard to believe. The world is closing down, is protecting itself. It is electoral year in France and the politicians support the protection of the work places in the country. The UK will go out of the common market and Trump announced measures for the keeping of companies in the US. And we are working, in general, for orders coming from abroad. It is hard to believe that we will have such a growth of the industry’ stated for MEDIAFAX Cristian Parvan, the general secretary of the Association of Business People of Romania (AOAR).
According to the draft budget presented on Monday by the ministry of finances, the industry should increase its contribution to the GDP from 0.6% as it was in 2016 to 1.4% of GDP in 2017. On the other hand, agriculture will drop from 0.2% of GDP in 2016 to 0.1% this year.
The budgetary deficit will be 2.96% of GDP this year, similar to next year and in 2019 it will reach 2.56% of GDP and 2% in 2020.
‘The deficit under 3% of GDP this year can be supported as there are two things which regulate the situation, as they did until now.On the one hand, there will be two budgetary amendments, and in summer, if it doesn’t work there will be corrections. On the other hand, as it happened until now there will be cuts in the investment area’ Cristian Parvan said.
The figures presented by the government, the budgetary construction relies on the growth of collection to the budget. The budgetary income this year will grow to 31.2% against 29.5% in 2016. In 2018, the budgetary income will represent 32.4% of GDP and 32.9% in 2019.