Fiscal Council: The Romanian Government delays investment spending for next years

The Government has significantly increased its current expenses, which include salaries, subsidies, and acquisitions of goods and services, but at the same time has massively diminished the investment spending, through its second budget amendment, according to the Fiscal Council. However, the local infrastructure has huge investment needs, which means that the investment spending has only been delayed for the next years. The investment spending decreases by EUR 700 million compared to the first budget review in 2015. Delaying investments only puts additional pressure on the budget in the following years. Adding to these the tax cuts which will entry into force starting next year, the budget deficit will be of almost 3% in 2016 and will exceed this limit in 2017, according to the Fiscal Council. editor@romania-insider.com