We need to come out with a budget deficit of about 3% in a few years. If we can’t bring it to 4.4% in 2023, at least let it be below 5%, and in 2024 let’s manage to go lower,” said Daniel Dayanu, president of the Fiscal Council.
“It’s not easy at all. It is difficult to increase tax revenues in an economy that, despite still having economic growth – let’s hope it will be in 2023 – is clearly lower than in 2022,” he told the news.ro conference.
According to him, inflation will be lower, which will not help the implementation of the budget.
“In 2022, we had a big windfall of inflation that helped the budget, as it helped everywhere else in Europe. This helped us keep the public debt at around 48% of GDP,” Daniel Dejanu also confirmed.
- “Decreasing the budget deficit by 3 percentage points can lead to a decrease in the current account deficit by 2 percentage points. I mean share of GDP. That would be a significant discount. The cost of financing and refinancing would decrease.”
Source: Hot News
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