Romania had a surplus of RON 1.5 billion (EUR 339 million) in the first quarter of the year, even if the budget estimated a RON 6 billion (EUR 1.35 billion) deficit for this period, said Prime Minister Victor Ponta.

He added the Government has the possibility to reduce the VAT from 24% to 20% or cut the VAT for basic food items starting June.

Ponta recently presented the data, immediately after the International Monetary Fund (IMF) released a report on Romania. Romania doesn’t have space to reduce the taxes until it improves their collection and the revenue administration, reads the IMF report.

editor@romania-insider.com