The finance minister Florin C\u00ee\u0163u said on Thursday that the economic and financial situation inherited from the
\nSocial Democratic government, in particular his predecessor Eugen Teodorovici, exceeds
\nthe most pessimistic expectations. He made unprecedented accusations, saying
\nRomania has been run in the last three years based on two budgets, one
\npresented publicly in Parliament and another, containing real data, used to
\nfinance the Social Democrats’ local leaders. The mechanism, translated,
\naccording to C\u00ee\u0163u, into a mafia-type double accounting system, allegedly used
\nbudget adjustments to take money out of investments and redirect it to the
\nparty. Minister C\u00ee\u0163u says he is considering getting the criminal prosecution
\nbodies involved to look at whether an organised criminal group was created in
\nrelation to the situation of public finance. The deficit discovered amounts to
\n21 billion lei, the equivalent of 4.4 billion euros, according to the real
\nfigures. Florin C\u00ee\u0163u:<\/p>\n
<\/p>\n
The estimated revenue for the first nine months
\nshould have been 249 billion lei. It stands at 228 billion lei, which means 21
\nbillion is unaccounted for. 11 billion represents uncollected money from the
\neconomy. The other half comes from European funds. The deficit for the first
\nnine months should have been 2.28%. The budget execution in the first nine
\nmonths stands at 2.60% and the execution for the first ten months, which I am
\npresenting today, is 2.84%, which is more than it should have been at the end
\nof the year. The pension budget has been discussed repeatedly and Parliament has
\nheld an entire debate about the expected surplus to the pension budget. Ten
\nmonths into the year, the deficit already stands at 2.9 billion lei. The
\nsituation looks much worse for the end of the year unless something is done.<\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
The conclusion of minister C\u00ee\u0163u is
\nworrying. Unless measures are taken, especially in respect of tax collection,
\nthe budget deficit is expected to reach 4% at the end of the year, 1% more than
\nthe figure recommended by the European Union. In response, the former finance
\nminister Eugen Teodorovici has accused his successor of not understanding the
\nbudget and categorically denied the idea of double accounting. Eugen
\nTeodorovici:<\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
I am profoundly disappointed that Mr.
\nC\u00ee\u0163u seems unable to understand the budget. With regard to execution, there was
\nalways a difference, which translates as deficit, but if we look at 2019, now,
\nlet’s say, we have 21.7 billion lei in estimated budget revenue and 21 billion
\nlei in budget expenditure, which very clearly shows that there is no hole in
\nthe state budget. Also, I’ve seen Mr C\u00ee\u0163u’s allegation about crime groups and
\ndouble budgets. I don’t think there is a difference between what the finance
\nminister alleges, at least not at the time I left the finance ministry, and
\nreality. These are data presented clearly by my colleagues at the finance
\nministry and the entire team of professionals and for which they assume
\nresponsibility.<\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
The priorities of the finance
\nministry are the adjustment for 2019 and creating a budget for next year. <\/p>\n
\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Without measures, this years budget deficit may reach 4% of the GDP, says the finance minister in Romanias new Liberal government.<\/p>\n","protected":false},"author":110,"featured_media":83685,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[32654],"coauthors":[],"class_list":["post-83684","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-finance"],"acf":[],"yoast_head":"\n