PM Citu upholds Romania's 3%-of-GDP target for 2024

Romania’s prime minister Florin Citu said that the Government upholds the 3%-of-GDP public deficit target for 2024 and, in the short term, praised the voluntary compliance that pushed up the budget revenues to “record level” in April.

Romania’s budget deficit is broadly expected at 7% of GDP on a cash basis and 8% under the ESA methodology (accrual basis that filters out the effects of deferred tax payments).

"We have the best strategy (to combat tax evasion) so far because voluntary compliance has increased for the first time in these two years. […] We have not increased the tax rates in recent years, on the contrary, we have extended facilities, we have not introduced new taxes and yet ... [that’s what happens] when you have predictability ... that is the key. Voluntary compliance is important, we see an increase in voluntary compliance," the prime minister said, according to Bursa.ro.

He also said that he would keep in touch with the European Commissioner and Executive Vice-President of the Commission Margrethe Vestager “to make sure that we have progressed."

Among the key reforms envisaged by the Government, and included in the Convergence program 2021-2024 submitted to the Commission, PM Citu outlined those on the pension and public wages systems, the National Development Bank and “reforms for reducing carbon emissions, switching to green energy and so on.”

(Photo source: Gov.ro)