“The budget is based on investments. Investments are prioritized, they are better structured and they will be done,” Voinea told ZF.
There is a list of major investment projects whose value exceeds RON100 million.
“They are 127 projects which exceed this value and the total value of these projects is RON148 billion. Two thirds of these projects have been financed with European funds and one third from the state budget,” Voinea said.
Romania’s budget set an official economic growth target of 2.2% in 2014. Voinea deems the target “conservative”. The budget deficit will be adjusted down to 2.2% of GDP in 2014.
Twenty-five priority investment projects worth RON71 billion have been selected from the list of 127 projects that should be finalized by 2020. Most of them target infrastructure, but there are also projects in healthcare, culture and the environment.
For next year the Finance Ministry plans to boost the share of investments to GDP from 5.8% to 6%.
Revenues of the consolidated budget are estimated at RON216.8 for 2014, 3.6% more than the initial level estimated for 2014 and 5.2% more than the level of budget revenues set after the second budget revision this year. The share of budget revenues to GDP will remain steady at 32.9%, according to Voinea.
The 2014 budget states a flat rate of 16% and VAT of 24%, but authorities have prepared a new wave of fiscal measures for 2014. The budget impact of fiscal measures is RON4.9 billion, according to Voinea.
The budget minister does not believe the new fiscal measures, which include new taxes and a new formula to calculate excises considering annual inflation, will have a significant negative impact on the economy, saying these measures “bring money to the budget, which is then used for investments.”
(English version by Daniela Stoican)