Ooni Koda
  1. Home
  2. /
  3. Newsfeed
  4. /
  5. Daianau: What is taking shape in tax and...

Daianau: What is taking shape in tax and budget measures is auspicious, but insufficient

November 16, 2023

The Romanian Fiscal Council (CF) believes that the package of tax and budget measures is auspicious yet insufficient, because the consolidation equation cannot be solved exclusively on the expenditure side, as tax revenues should also increase, CF Chairman Daniel Daianu said on Tuesday."Romania had to change tack. Although we had gone down with the government deficit, from the one recorded in the year of the COVID-19 pandemic to 7% of GDP in 2021, there was a risk that we would stop, the consolidation would not advance. And such a package was absolutely necessary. I also think, and we at the council appreciate that it is an insufficient package not because the International Monetary Fund (IMF) came and made the consultations (...) and not because the IMF experts said that it is an insufficient package. Indeed , this package can bring between 0.9% and 1.4% of GDP improvement in public finances. This year, our latest assessment shows that the deficit would exceed 6% if no spending restraint measures are taken. Fiscal measures are unlikely to have a significant impact in 2023. So without significant expenditure control measures (...) the deficit would be around 6%, if not past 6% of GDP this year. It will be very difficult for us to reach 5.5%, but it is possible. It is important to give this signal," Daianu told the Banking Forum conference organised by Financial Intelligence.He added that in Romania "they ran away from reality" when considering that there is no need for additional income and that everything boils down to cutting expenses."We in Romania ran away from reality. We did not understand that for years we lived beyond our means, which is also visible in the external deficits, not only in the internal deficits (...) This rejection of reality, this refusal of reality is also accompanied by a mythology, by propagated myths: that there is no need for additional tax revenues, that everything boils down to cutting expenses. When I hear economists say something like that, I say: Sir, in what sphere do these people live? Did they pick up the pencil? Are they doing some serious, applied analysis? (...) Of course, it really helps for the image to be able to reduce by half the number of secretaries of state and advisers. That does not solve the problems of the national budget," said Daianu.He added that the consolidation equation cannot be solved exclusively on the expenditure side, but there has to be higher tax revenues."A country that chronically under-finances healthcare, education - speaking of the type of state - that does not allocate... we also see what happens in the state's major interventions, starting from fires, accidents, the fight against drugs. We do not have enough staff in the fight against drug-taking. Equipment is not enough in government interventions. We are not prepared to respond to the current challenges, let alone future challenges. It may be necessary to spend more on defence. Where to introduce so many necessary expenses when the revenues are around 27%?"Daianu went on to say that if Romania does not get additional tax revenues it we will stay saddled with a 5% deficit, and no correction can be made without pain. 

Read in full - click here
Bucharest Stock Exchange marks historic milestone as BET index climbs above 20,000 points

The Romanian stock market benchmark – the BET Index – officially crossed the 20,000-point threshold on Tuesday, July 25, 2025, marking a major milestone in its recent surge. The BET has gained about 7.5% in the last month, setting several new record highs on its path to 20,000 points. However, the Bucharest Stock Exchange’s recent […]

Brokers in Cryptocurrency Trading — How They Work, Types, and Benefits

If you operate as a crypto broker, you might have come across a crypto broker program — a specialized service designed to enhance broker operations, expand service offerings, and optimize how they serve their end clients. These platforms have grown in popularity, offering streamlined access to the digital asset space with tools designed to suit both […]

Kent Nagano, Gidon Kremer, Leonidas Kavakos, Kirill Gerstein among musicians joining Bucharest's George Enescu Philharmonic for concerts in upcoming season

For its 2025-2026 season, the George Enescu Philharmonic will bring to Bucharest more than 70 Romanian and foreign conductors and soloists of top level, 75% of whom are present for the first time in its artistic programming, the institution said. Among the names that will take the stage of the Romanian Athenaeum in Bucharest starting this […]

Western Romania: House destined for former communist dictator Nicolae Ceaușescu up for sale

The Neuman House, a protocol residence for former communist dictator Nicolae Ceaușescu situated in the city of Arad, in western Romania, is up for sale for EUR 2.4 million, according to an online listing by an international agency specializing in luxury property brokerage cited by Agerpres. The building belonged to the noble Neuman...

Romania to raise retirement age for magistrates to 65 years, cap pensions

During a press conference held on Tuesday, July 29, Romanian prime minister Ilie Bolojan presented the main measures from the magistrates' pension reform project, which will be included in the third fiscal package. The project includes raising the retirement age and capping pensions. The reform is urgent and necessary, said the official, who also warned […]

UNICEF, Spotify launch Romanian-language version of podcast focused on mental health

UNICEF has launched the Romanian-language version of the podcast On My Mind (În Mintea mea), created to support young people's mental health, with the support of global streaming platform Spotify. The Romanian-language version of the podcast complements the work carried out by UNICEF in Romania, which is currently implementing an initiative aimed at promoting the […]