Fiscal Council Says Govt's 5.5% GDP Growth Projection Is Surprising, Unwarranted

Maintaining an economic growth projection of 5.5% in 2019 especially after the emergency decree 114/2018 introducing new taxes is surprising and unwarranted, Romania's Fiscal Council said in a statement Tuesday.

6 views

The GDP growth projection is deemed overly optimistic and unrealistic since real economic growth is expected to come in at 4%-4.5% for 2018.

It also warned the swift adoption of new taxes with a negative impact on the country's economy through emergency decree 114/2018, such as a tax on bank assets and additional taxation in the energy and telecom sectors, may amplify slowdown risks.

The fiscal council said the government's revenue collection estimations are exaggerated in terms of VAT, excise duties and one-off revenues. In terms of expenses, the council said goods and services and interest payment spending are potential sources of risk.

The fiscal council is an independent authority aiming to help government and lawmakers draft tax and budgetary policies and promote transparency and sustainability of the country's public finances.

Read more: Fitch Ratings: Romania 2019 Budget Fails to Lift Fiscal Uncertainty

Read more: Ruling Coalition Leaders And Government Officials Meet To Discuss 2019 Budget

Read more: Train Car Loaded With Dangerous Substances Derails In Caras-Severin County

If you liked this story, please follow MEDIAFAX.RO on FACEBOOK »

The content of mediafax.ro is for your information only. Republishing or using this content is forbidden without express consent of MEDIAFAX. For this consent, please ask for it by mail at vanzari@mediafax.ro.