Romania To Keep Flat Tax, VAT Unchanged In 2010 – Caretaker PM

Boc said estimated revenues to the state budget in 2010 are calculated at the existing flat tax and VAT levels. The draft budget will be adopted as soon as the parliament’s decision empowering the caretaker government to approve the document is published in the Romanian Official Journal, he added.

Romania’s minority government was stripped of its decisional powers after it failed a no-confidence vote in parliament mid-October and needed the lawmakers’ permission to adopt the budget and send it in Parliament.

Boc also said the government will allocate 20% from the state budget to investments in 2010.

Romania’s consolidated budget envisages overall revenue of 166.7 billion lei (EUR1=RON4.2967) in 2010, while total expenditure is seen at RON197.9 billion, a Finance Ministry official said early October.

In 2010, total revenue will amount to 31.75% of the gross domestic product, while expenditure will reach 37.68% of the GDP, reflecting a budget deficit projected at 5.9%.

Romania’s GDP is estimated at RON525.1 billion in 2010, up 0.5% in real terms compared with RON497.3 billion predicted for this year.