The Fiscal Council (CF) has revised upwards the budget deficit projection for the current year, estimating that it will probably be over 6% of GDP, in the absence of corrective measures for the budget slippage, according to the institution’s Annual Report. According to the source, the need for the adoption of corrective measures was signaled by the FC in its opinion on the draft budget, but now the importance of their rapid adoption must be emphasized, considering the short time in which they can produce effects on the budget execution of 2023, write Agerpres.

„Fiscal Council reiterates that the fiscal-budgetary consolidation process calls for a significant increase in fiscal revenues, which are at an inadmissibly low level in relation to the needs of Romania and the other EU member states. In this sense, it is necessary to eliminate the exceptions and loopholes from current legislation, as well as increasing collection efficiency by discouraging tax optimization and reducing evasion. It should be taken into account that such measures have a significant distributional impact, so their implementation may face difficulties and the opposition of some interest groups,” the source mentions.

According to the Report, the increase in tax revenues represents a problem of economic security and national solidarity, so that the public budget can face very large current and future needs. „Taking into account that public health and education are chronically underfunded, that the current military and geopolitical context calls for increased defense spending, and the severe impact of climate change requires state intervention in difficult times, the significant increase in tax revenues represents an urgent necessity, a priority in economic policy,” the report also says.