The Foreign Investors Council (FIC) welcomes the Parliament’s approval of the budget on Tuesday, in a press release. FIC believes that the budget reflects a balanced and vision for Romania’s economic recovery. The measures taken in Romania since the health crisis have proved that the main concern is to overcome the issues of the healthcare system by ensuring the security of its citizens, together with supporting the economy.
“We consider that the central elements of the construction of the current budget are well outlined by the realistic estimation of future revenues and the framing of the general consolidated budget deficit of 7.16% within the acceptable limits at the EU level,” according to FIC.
This can ensure the successful implementation of various measures in the governing coalition program, such as the stability of the level of taxation, the ensuring the reduction of administrative costs in the next few years, further fiscal consolidation, and the positioning towards large-scale investment projects.
According to FIC, another important factor is the allocation of investment, 5.5% of GDP, which shows a way to rethink future priorities.
The investments scheduled for this year reached a record high of 61.4 billion RON, which can play a catalyst role in relaunching economic growth. FIC states that the budget provides for a substantial allocation for the state contribution to European-funded investment projects (co-financing 2.9% of GDP), is a good indicator for greater absorption of funds, and sends a positive signal to the business environment, which is still coping with the impact of the health crisis.
FIC believes that foreign direct investment can make a significant contribution to the economic recovery and the implementation of structural reforms will help maintain the budgetary balance.