The situation of public finances remains fragile and generates concern that the budget deficit target for this year risks not being reached, stated the president of the Foreign Investors Council (FIC) in Romania, Daniel Anghel, during the latest meeting of FIC with top officials of the Ministry of Finance and tax collection agency ANAF. 

As the fiscal slippage turns into the baseline scenario for this year in Romania, investors grow increasingly anxious about the steps the Government may take after the elections, partly inspired by the European Commission and IFIs, to address the Excessive Deficit Procedure.

To reduce the magnitude of the fiscal corrective package expected in 2025, the FIC urges the Government to monitor the effects of the previous package enforced as of January 2024 and implement policies with an impact on curbing expenditures and improving tax collection.

The reduction of the deficit "should be achieved through a mix of measures that also target the area of budget expenditures and, above all, fiscal administration in order to obtain a greater collection of existing taxes," reads the FIC statement released after the meeting with finance minister Marcel Bolos.

iulian@romania-insider.com

(Photo source: Juan Moyano/Dreamstime.com)