“It’s true, the revenues from the special constructions tax were initially estimated at 500 million lei (EUR113.7 million). It looks that we might be talking about RON1.5 billion in revenues, but the surplus amount has already been depleted,” Dumitru told reporters.
He said revenue collections to the state budget fell short of estimates by some RON1 billion during the first months of 2014.
“I find it hard to believe that the money will be recovered in the upcoming months.”
The government Wednesday approved a five-percentage point cut in the social security tax, in a move aimed at lowering the burden on labor and stimulating investments. The new tax rate will be applicable starting with October 1, pending an upcoming vote in parliament.
The authorities said the measure’s negative impact on the state budget would be offset by higher-than-estimated revenues from the tax on special constructions, as well as by a series of fiscal measures aimed at improving tax collection and reducing government debt.
Although a widely welcomed measure, the lower social security tax rate takes a very heavy toll on the state budget and extra measure are required to boost revenues and reduce the deficit, Dumitru said.
“The 2015 deficit must be lowered to 1.4% of the gross domestic product, from a gap of more than 2% of GDP this year. Right now, we don’t have the measures to make that happen,” he said.