Romanian Fin.Min: Economic growth could exceed 5.2% this year

29 May 2017

Romania will meet its budget deficit target of 3% of GDP this year and it is possible that the economy's advance will exceed the official estimate of 5.2%, supported by wage increases and tax cuts, finance minister Viorel Stefan said on Friday in an interview with Reuters, reports local Agerpres.

He added that the Government will introduce the fiscal relaxation measures, which were mentioned in the governing program, starting January 2018.

Next year the Government wants to reduce the number of social insurance contributions from nine to two, for pensions and healthcare. They will total 35% of the gross wage. The nine contributions currently amount to 39.25% of the gross wage and are paid jointly by employees and employers.

Employers will no longer have to pay social security contributions on behalf of employees starting next year. The contributions will be fully transferred to employees, the minister said.

The Parliament is close to adopting the payroll law, which will more than double the gross salaries of people working in healthcare. Employees in education will see 50% increases in their salaries and other categories of public employees will see lower growths.

Viorel Ştefan said that most wage increases will return to the budget in the form of taxes.

IMF warns Romanian Govt. that budget deficit could reach 3.7% of GDP

editor@romania-insider.com

Normal

Romanian Fin.Min: Economic growth could exceed 5.2% this year

29 May 2017

Romania will meet its budget deficit target of 3% of GDP this year and it is possible that the economy's advance will exceed the official estimate of 5.2%, supported by wage increases and tax cuts, finance minister Viorel Stefan said on Friday in an interview with Reuters, reports local Agerpres.

He added that the Government will introduce the fiscal relaxation measures, which were mentioned in the governing program, starting January 2018.

Next year the Government wants to reduce the number of social insurance contributions from nine to two, for pensions and healthcare. They will total 35% of the gross wage. The nine contributions currently amount to 39.25% of the gross wage and are paid jointly by employees and employers.

Employers will no longer have to pay social security contributions on behalf of employees starting next year. The contributions will be fully transferred to employees, the minister said.

The Parliament is close to adopting the payroll law, which will more than double the gross salaries of people working in healthcare. Employees in education will see 50% increases in their salaries and other categories of public employees will see lower growths.

Viorel Ştefan said that most wage increases will return to the budget in the form of taxes.

IMF warns Romanian Govt. that budget deficit could reach 3.7% of GDP

editor@romania-insider.com

Normal
 

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