AmCham argues Romanian Govt. should work on increasing tax collection

Romania's Government should strengthen the administrative capacity to best benefit from the significant allocations for health, education, and infrastructure on the expenditures side, AmCham Romania recommended in the context of the debates on the 2021 State Budget project.

On the revenues side, the authorities should also pursue concrete measures to increase the tax collection revenues by modernizing and digitizing the tax administration, AmCham says.

On a positive note, the association that represents US investors in Romania noticed a significant increase in the budget allocation for investments, "which would double compared to the pre-pandemic years to an unprecedented level for Romania."

Romania could end up spending a record 6.5-7% of GDP on investments if the Government manages to absorb 80% of the European grants provided by the European Facility for Resilience and Recovery (MRR), according to an analysis by the Fiscal Council quoted by Bursa daily.

Overall, AmCham saluted the start of fiscal consolidation, at the same time recommending more courageous measures to limit the structural deficit for 2022 – 2024, both by reducing expenditures and by increasing the collection rate of fiscal revenues and a significant improvement of the EU funds absorption.

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