Romanian PM Presents ’05 – ’08 Governing Report

He presented data on the evolution of economy since 2005, backed by economy and finance minister Varujan Vosganian.

Despite floods and drought, the average economic growth between 2005 and 2007 was 6%, while in non-agriculture activities the average growth was 7.8%. In the first half of the year 2008, the GDP grew by 8.8% - an absolute record after 1990, according to data presented by Tariceanu.

"Romania’s economy has chances to grow by some 9% in 2008, according to estimates from the National Forecast Commission, and we are the nation with the greatest GDP growth in Europe," Tariceanu said.

The GDP per capita is estimated to reach EUR6,500 EUR/citizen by the end of the year, compared to EUR1,250 in 1996, EUR1,800 in 2000 and EUR2,800 in 2004. The GDP is estimated to reach EUR140 billion in 2008, compared to EUR60.8 billion in 2004.

The average inflation between 2005 and 2008 was 7%, compared to 20.8% between 2001 and 2004, the report reads.

Tariceanu added the introduction of the flat tax allowed the reinvestment of money collected through the profit tax, enabled authorities to fight against "black market labor" and the reinforcement of financial discipline.

Budget revenues obtained from the profit tax were 62.8% higher in 2007 than the ones in 2004, while in the first half of 2008 these revenues grew by 27.5%. Budget revenues from the income tax were, in 2007, more than twice those in 2004, while in the first half of 2008 they grew by 35%.

He also said the Government invested in education in 2007 an amount similar to the one invested in the entire period between 1990 and 2005. Two years ago 6,111 schools and high schools received funding, namely 25.4% of all schools and high schools, while in 2007 financing was issued for 10,961 school units, almost half of all units.

In health, the emergency services were outfitted with 1,520 new ambulances, while emergency rooms received new equipment worth EUR167.7 million, with total spending for health reaching RON20 billion (EUR1 = RON3.6388) in 2008.

Other items presented by Tariceanu included Romania’s EU accession, the doubling of the pension fund and an average pension of RON565 and a higher average gross salary of RON1,700.

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