Reaching the 5.2% economic growth target, on which the Romanian Government has based its 2017 budget, while also keeping the budgetary deficit under 3% of the GDP, calls for intensified efforts to increase the collection capacity and for a thorough implementation of the proposed investment plan, according to the American Chamber of Commerce in Romania - AmCham Romania.

“The ambitious raise of the projected revenues of RON 254.7 billion compared to RON 223.7 billion collected in 2016 must be based on increased budgetary revenues, avoiding any changes of the fiscal policy. To this end, it is critical to accelerate ongoing projects to increase the administrative capacity of the fiscal authorities to collect budget revenues and to fight tax evasion, along with efforts to modernize public administration in general,” reads an AmCham statement.

In AmCham’s view, it is “of utmost importance that the commitment to the RON 39.4 billion for investments is observed”, as it will have a major contribution to reducing gaps in key sectors for Romania, such as education, healthcare, infrastructure, R&D, provided it is strategically channeled.

“It is detrimental for Romania’s medium and long term development to reach budgetary targets by way of cutting investments or changing the fiscal policies that directly and immediately affect the business community, the main contributor to the state budget.”

The business organization also recommends that EU Funds absorption remains a central objective in the Government agenda, reflected as such in the state budget project.

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editor@romania-insider.com