RSS
The Council for SMEs : investments must be cut and loans must be made so that Romania get into a deficit of 3% of GDP
The authorities must cut investments massively and get loans in an accelerated way so that Romania get into a budgetary deficit of 3% of GDP, otherwise the target of 3% will be surpassed until the end of the year, stated Florin Jianu, the chairman of the National Council of private small and medium entreprises in Romania (CNIPMMR).
‘The great danger is that area of increased expenses which are fixed. Namely the salaries and the pensions will be paid in the years to come as well but you cannot rely on the European funds or the income from privatisations’ stated on Monday in a press conference Florin Jianu the chairman of CNIPMMR.
Thus, the council requires urgent measures for the increase of public investments with a view to supporting the economic relaunching as well as the application of the recommendations of the IMF which required the increase of public investments, as well as the use of European Funds.
Florin Jianu adds that the absorption of the European funds is extremely reduced raising important question marks as regards the observance of the budgetary deficit of 3%.
‘The expenses with investments dropped continuously, almost by half as compared to the similar period of 2009 – 2013 which will affect the creation of new work places and the budget limits. The bad dynamics go on: encouragement of consumption against investments and future consumption’ Florin Jianu says.
He says that keeping the present evolution as regards the budgetary expenses and income is not sustainable and affects the future development of Romania, keeping it as the last in E.U’.
‘In the first seven months, the budgetary total income was 141,223 billion lei, 17.3% of GDP with 9% higher than the similar period of 2016 as the governing programme includes growth for collections up to 14%’ the CNIPMMR representative says.