A deficit target of up to 5% of GDP with a plan of fiscal measures and a robust spending plan would protect Romania from the biggest risk it faces, namely that of having the European funds suspended, minister of finance Marcel Bolos said.

The Romanian ruling coalition is yet to unveil a plan to contain the public deficit within this limit, however.

"The flat tax rate of 10%, which is the lowest in the EU, and which the Liberal Party (PNL) has struggled to defend, cannot exist in the long run with over 70 exceptions/tax incentives that exist [at this moment]," he stated, according to Cursdeguvernare.ro.

"There are several stages of discussion that we have on the expenditure side, on fighting tax evasion, on tax incentives, on capitalising the state resources," said the minister, who added that under no circumstances will the deficit exceed 5% of GDP.

The Romanian government officially targets a deficit of 4.4% of GDP, a target envisaged when the 2023 budget planning was sketched but is no longer realistic at this moment.

iulian@romania-insider.com

(Photo source: Gov.ro)