Investment spending doubled in the first four months of 2024 to RON 30 billion, as against RON 15 billion lei in April 2023, Finance Minister Marcel Bolo said on Tuesday at a briefing at the end of a government meeting.

„Very importantly, investment spending, you will see, has increased from the previous year; it has doubled. So, while in April 2023 we had RON 15 billion, now we have RON 30 billion worth of investment, which is a good sign that investment is being implemented and that we will reap the fruits of the multiplier effect of investments. That is also reflected in the specialist literature, because these types of investment are expected to have a multiplier effect, from attracting investors to creating jobs and everything necessary for Romania’s sustainable economic development,” Bolos said.

Regarding the government deficit, Bolos said that in June a trajectory of the budget is expected that the European Commission communicates to each member state facing excessive budget deficit.

„What does excessive budget deficit mean? It means exceeding the limit of 3% of GDP or 60% of public debt of GDP. Like any member state of the European Union, this budget deficit trajectory will start from an estimate that the European Commission takes into account and will also have a period of time in which Romania will have to adjust the budget deficit to the limit provided for in the Maastricht Treaty. The estimates and the budget deficit limit that we will receive from the European Commission will clarify where we start. Perhaps we say 5%, the European Commission, in its estimates, says 6.6%. That will be the starting point in the budgetary adjustment and in the budget and tax consolidation that we will have to go through over a time horizon that can be up to seven years. I said – and I also stress – that if the period of time is reasonable, Romania will be able to implement its investment budgets.”

Bolos added that in 2024, the estimated government deficit is the one that was planned by the State Budget Law, and, by the end of the year, there is a revenue plan to be completed.

Asked how soon he estimates Romania to be able to meet the 3% deficit target, he replied that the European Commission’s regulation allows it up to seven years and that, due to the fact that a multiplier effect results from the investment projects implemented by Romania, consequently Romania should have a time horizon as long as possible.

He added that they tried to find a balance between what business taxation means and having quality public systems.

„Everyone wants the healthcare system to work as well as possible, everyone wants a better education system. These are not done without efforts from the government and, of course, it is only about spending for the benefit of Romania and long-term sustainable growth,” said Bolos.

AGERPRES