The investments scheduled this year will reach an all-time high, amounting to 61.4 billion lei and can play the role of catalyst in relaunching economic growth, say representatives of the Foreign Investors’ Council (FIC), which welcomes the adoption of the budget by Parliament.
They consider that the budget reflects a balanced vision and favorable to Romania’s economic recovery.
“We believe that the central elements of the construction of the current budget are well defined by a realistic estimate of future revenues and the consolidation of the general consolidated budget deficit (7.16%) within acceptable limits at EU level. All this can ensure the successful implementation of measures, such as the stability of the taxation level, the assurance of the reduction of the administrative expenses in the next years, the continuation of the fiscal consolidation and the orientation towards big investment projects,” it is shown in a release of the FIC quoted by Agerpres.
According to the quoted source, the allocation of 5.5% of GDP for investments shows a rethinking of priorities in the future. “The investments scheduled this year reach an all-time high, amounting to 61.4 billion lei and can play a catalytic role in relaunching economic growth. In addition, the budget provides a substantial allocation for the state’s contribution to European-funded investment projects (co-financing 2.9% of GDP), being a good indicator for a greater absorption of funds and transmits a positive signal to the business environment, which still feels the effects generated by the health crisis,” the FIC release adds on.
Also, the representatives of the FIC consider that the current budgetary challenges can be solved through a series of measures whose implementation does not require an additional financial effort, as long as the political will is ensured.
“We refer mainly to the potential for revenue growth by improving the system of budget revenue collection and digitization of ANAF, but especially by creating and implementing a vision for Romania to attract high value-added investments, which can play an important role in stimulating a future economic growth. The implementation of structural reforms will help to maintain budgetary balances, especially if adjustments are made to administrative expenditure, in conjunction with the launch of public and private investment projects, thus ensuring that the current context is overcome and granting Romania’s success in the medium and long term,” added the FIC representatives.
In their opinion, foreign direct investment can make a significant contribution to the economic recovery and therefore FIC reiterates the need to outline legislative measures and institutional structures dedicated to attracting foreign investment, considering this area a priority for the next period. From this point of view, the FIC remains an active dialogue partner that can support the authorities in such endeavors, the statement said.