The president of the Fiscal Council, Daniel Dayanu, believes that it is “very unlikely” that Romania’s budget deficit will be less than 6% this year, he warns that if there is no “attention” from the governors, the deficit could increase to 7 percentage points. Deianu believes that Romania is in for a “difficult, very difficult implementation of the budget”

Daniel Dayanu says that 2024 will be, from an economic point of view, “a very difficult year” and he believes that Romania can no longer continue “with such a large structural deficit” as it has been in recent years.

“I think that this year we have a chance to have a GDP growth of about 3%. Because our pensions are increasing, our salaries are increasing, and all this fuels economic activity, fuels demand. We at the Fiscal Council believe that it is very unlikely that we will have a deficit below 6% this year. We will have problematic implementation of the budget, very difficult. And if there is an appeal – because the Fiscal Council is not the creator of economic policy, but is a warning about a balanced approach to budget programming and execution. We risk increasing the budget deficit to 7% if we are not careful,” said Daniel Dayanu at the “Macroeconomic and Fiscal Prospects of Romania in 2024” conference organized by News.ro.

Dayanu says Romania needs “more fiscal revenue” but believes the government cannot take measures that are not approved by the majority of the population.

“We have to reduce the budget deficit by 4 percent of GDP. This reduction cannot be done through debt cancellation, someone has to tell Romania that its debts are being canceled and that Romania will constantly benefit from the inflow of funds that will increase its non-tax revenues. This is not possible!” – says the head of the Fiscal Council.

Dejanu also said a “fair tax regime” was needed, arguing that it was unfair that workers in some fields, such as IT, were tax-free for decades while others paid tax.