Fiscal Council

Romania will record economic growth of between 6 and 7% in 2021, Daniel Daianu, chairman of the Fiscal Council said on Wednesday, adding that there is an economic rebound, there is public investment spending of 5.5% of the Gross Domestic Product (GDP), more than in 2020. "I believe that, indeed, the growth will be between 6 and 7% in 2021. It might as well be 7%.

Ljubljana – The Fiscal Council has noted that at least one of the two conditions enabling the government to depart from the obligation of medium-term fiscal balance under exceptional circumstances will be met next year. It has thus advised caution and again called on the government to clearly define mitigation measures and quantify their fiscal effect.

Ljubljana – After discussing the government’s Demographic Fund bill at the request of the opposition, the parliamentary Commission for Oversight of Public Finances decided on Friday that the concept did not provide a long-term sustainability of pension funding. It thus called on the government to draw up a new, better solution.

The draft state budget law will be approved with a deficit target of 7.16 percent and with the same parameters of expenditures and revenues, Prime Minister Florin Citu declared on Thursday. "The budget deficit remains as we have established, there are changes maybe inside, different allocations, more commitment appropriations. We are not talking about more budget appropriations.

Prime Minister Florin Citu says that the opinion of the Fiscal Council regarding the state's budget for 2021 represents the "professional's notice", and the one expressed by the Economic and Social Council (CES) - an approval given by a "political council". "There is a need for reform. From the ground up. First time in Romania.

Ljubljana – The Fiscal Council has warned that the latest legislative stimulus package contains certain provisions that may worsen the structure of public finances, including the proposal for simplified retirement and one-off aid to population groups not directly affected by the coronavirus epidemic.

Ljubljana- In the second wave of epidemic, the government seems to be taking rapid measures under pressure to be able to boast, believes Davorin Kračun, the head of the Fiscal Council. “It could easily happen that many measures will prove counterproductive,” he said in an interview the newspaper Večer runs on Saturday.

Romania needs smart, hands-on public policies, "for instance a promotional (development) bank is necessary, and reviving the idea of a National Development Fund, after the Polish model, should also be considered," Fiscal Council chairman Daniel Daianu writes in an op-ed.

Prime Minister Ludovic Orban said on Thursday that he understands the concerns expressed by the Fiscal Council regarding the possible increase of the budget deficit, but assured that "there is no risk" for this to happen in 2020.

The President of the Fiscal Council, Daniel Daianu, recommends postponing new increases of incomes / salaries, stopping the promises that generate unrealistic expectations in citizens and restructuring the state apparatus given that, according to him, the acute deficit of fiscal area is increasingly dangerous.