Fiscal Council president: Romanian Government’s estimates are too ambitious

Romanian economist Ionut Dumitru, the president of the Fiscal Council, said yesterday that the Government’s 5% economic growth estimate, on which it based the 2017 budget, is very ambitious, and that budget revenues appear to be too optimistic. He added that it’s not prudent to use such an optimistic estimate, which could lead to a higher deficit if the estimated revenues are not realized, reports local Mediafax. “If you don’t take collective measures, you can get to a very high deficit,” Dumitru added. Former finance minister Eugen Teodorovici, a senator for the Social Democratic Party (PSD), asked yesterday for Dumitru’s resignation as president of the Fiscal Council. The senator argued that Dumitru also works at Raiffeisen Bank, and he could have an interest in issuing negative opinions towards the budget. The Fiscal Council is an independent institution that evaluates the macroeconomic forecasts on which the Government bases its budget revenue estimates and the impact of the Government’s fiscal measures. The council has five members who are voted by the Parliament at the proposal of several institutions, including Romania’s National Bank. The council’s members are elected for a 9-year mandate. editor@romania-insider.com