The IMF said Monday, when it presented the conclusions of its mission in Bucharest, that for 2017, it recommends a budget deficit of 2% of the GDP. It also said that delaying the next planned cut in the value added tax and the other planned facilities stipulated in the Tax Code, which are to be enforced in 2017, would generate savings of 0.75 percentage points of the GDP.
This year, the IMF is calling for enhanced public spending discipline and tax administration.
Romania lowered the general value added tax from 24% to 20% starting 2016 and will further cut it to 19% as of 2017.
A mission led by IMF mission chief for Romania, Reza Baqir, has been in Bucharest between March 2 and 15 for the annual evaluation of Romania’s economy, also known as an Article IV consultation.
Romania’s latest IMF agreement, a precautionary EUR2 billion stand-by deal with the IMF, ended in September 2015.