An important problem is the very low level of tax revenues. In Romania, where people live in lies and hypocrisy, there is a thesis among macroeconomists that there is no need to increase revenues, that it is enough to cut spending with a cleaver to achieve a small deficit, Daniel Dayanu, Romania’s president, said on Thursday. The Fiscal Council, at a conference at the headquarters of the BNR.

These are false considerations, absolutely false, he added. “Institutions such as the Monetary Fund, the World Bank and others come and tell you: you must increase your tax revenues, including by changing the tax regime. But when I say this, suddenly the institutions are classified as socialist,” Dayanu said.

The former finance minister also spoke on Thursday about bad economic policies and the need to change the tax regime, which he believes is unfair.

“We have a wrong economic policy that has led to large structural deficits. It is very difficult to change the tax regime now because there are strong groups that are against it. Will not ! There are all kinds of loopholes and irregularities. The (fiscal-nn) regime here is regressive, because those with lower incomes pay proportionally more,” the academician warned.

“But when you try to transform this tax regime, there is a clamor that actually wants to raise taxes and fees! What is wrong! We do not want to increase taxes and fees. We want justice! Equity! In the sense of compliance: pay what you have to pay to this state, which must also provide public goods without which society cannot function,” Dayanu believes.

Because when it is difficult, the same “abusive” State asks for help both to the left and to the right.

“The issue of tax revenues is acute, and there are analyzes that take into account what can be done by expanding the tax base, eliminating loopholes and all kinds of opportunities for improper taxation. Absolutely wrong.

Mistakes were made that are now very difficult to correct. And everyone who will be affected by the change in the taxation regime understands that they have been put in their pocket and taken away. We talk about society, but society does not exist – most people’s radar is only their own pockets.

The big gate must be removed again. They are used not only by petty tricksters. But also corporate companies that carry out all kinds of tax optimization. We can no longer put up with something like this, because the river will take more and more water,” concluded Daniel Dayanu.

​In his view, fiscal consolidation is absolutely necessary and will become increasingly difficult to achieve in the coming years as we no longer have the benefit of inflation and economic growth will be significantly slowed.