MF: Interest costs will reach 2% of GDP next year

The costs with the interest will reach 2% of GDP next year, and what the National Authority for Fiscal Administration collects in a month out of twelve will be paid for interest, says Alin Chitu, State Secretary in the Ministry of Finances (MF).

‘We start from an area where we get gradually to 25% fiscal income in the GDP and either we decide to reduce expenses, including social services and I am talking about the ones which consume a lot, Health, Education so that we can keep this level of taxes that we have now, or it will be necessary to do some things, to collect more. And I ask you not to forget that next year we reach 2% of GDP for the interest costs. Practically, what  the National Tax Administration Agency (ANAF)  collects in a month out of twelve we pay for interests. And then, in a way, this balance is necessary in a way or another, not only from the perspective of the National Recovery and Resilience Plan (PNRR) stated Alin Chitu in the conference ‘ Competition in key sectors’ organized by the Competition Council.

Asked about the fiscal reform, he said that ‘this is not a reform, but they are some steps, some decisions’.

According to the MF representative, Romania must get at 30% fiscal income from GDP and for this the income must increase by 3%. This year, adjustments on the tax side will bring 1% of GDP.

He also stated that the measures for digitization will bring four percentage points budget revenues at the finalization of PNRR.

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