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Florin Georgescu: The losses in the economy on 2011, of 10 billion euro would have solved the deficit for pensions and health
The GDP of Romania would have been last year 148 billion euro if there hadn’t been losses of 10 billion euro at the level of the economy, the difference solving the present deficit for pensions and health, the minister of public finances Florin Georgescu said.
“Last year, the GDP of Romania was 138 billion euro. The losses were of 10 billion euro. If these losses hadn’t happened, the GDP of Romania would have been 148 billion euro, the pie would have been bigger for the consumers for investments. The deficit for pensions and health would have been solved” stated Florin Georgescu in a reunion of the Bucharest Club with the topic “ Romania, the economic-social situation – present and perspectives”.
“That is the GDP with evasion, so we don’t fiscalise 138 billion euro, only 115 billionn euro, the rest disappearing nobody knows where” Georgescu said. Last year, 37% of the debts recorded by the companies were for shareholders or associates, phenomenon presented as Georgescu as “ totally anormal”.He mentioned that the aggregated losses at the level of the economy started to increase in 2007, against the year of 2000, increasing by 3.5 times, while GDP increased 1.7 times.
Income went from companies state-owned ones – they dropped from 22% to 6% of the income recorded by companies, between 2000 and 2011 to private companies where they increased from 77% to 93.3%.
“While the income in the private environment increased by 15.6 percentage points the expenditure advanced by 16.8 percetange points. Thus, only 11.9 percentage points were translated from the profit made by the state to the private sector. Thus, the private sector has less profit but spends more” Georgescu said.
According to the data presented, the average profit per employee increased 7.9 times in the private sector between 2008 – 2011 against 2000, quicker than in the public sector, where it advanced 5.2 times. On the other hand, the average loss per employee increased 5.7 times in the private sector and for the state three times.