The government will announce austerity measures

Next week, the government will announce a package of measures to reduce the budget deficit and improve access to European funds.

The executive intended to make this announcement on Friday, but in the absence of approval from the Economic and Social Council, the move was postponed.

The authorities are considering important fiscal decisions, such as adjusting VAT, eliminating bonuses in the public sector, and increasing excise taxes.

Prime Minister Ilie Bolojan says that Romania is in a difficult financial situation after spending excessively in recent years.

Reducing spending and increasing revenue will balance the budget deficit, Prime Minister Ilie Bolojan said.

-VAT will be restructured at two thresholds. Increased excise duties on fuel and alcohol-

Spending will be reduced by cutting the number of members on the committees that run state-owned companies and reducing their allowances, by granting bonuses based solely on performance, and by reconfiguring the school scholarship system.

Revenue will be increased by improving collection, combating tax evasion, and eliminating exceptions, as well as through a package of fiscal measures.

Ilie Bolojan: Value Added Tax will be reset to two thresholds. Today we have three thresholds. Next week we will announce these thresholds and explain the arguments behind them. It is very likely that we will propose an increase in excise duties on alcohol, for example, or fuel. One important problem we have is the underfunding of the Health Insurance Fund, and we are looking at expanding the taxpayer base by reducing some exceptions and, on the other hand, by applying this contribution to higher pensions. We are also considering additional taxation on capital; I am referring, for example, to banks and gambling winnings.

The government will also focus on increasing the absorption of European funds, especially from the NRRP, and this also means prioritizing investments, Ilie Bolojan added.

Translated by: Radu Matei