Romania’s financial situation, difficult but managing

The Minister of Finance, Tánczos Barna, said today that the financial situation of Romania is difficult, but manageable, due to an efficient cooperation between the government institutions and the National Bank of Romania (BNR). At the Romanian Business Leaders Conference, Tánczos Barna emphasized the importance of constant communication between financial authorities, especially during the period of global economic.

Financial stabilization measures

The minister has provided assurances that, although there is a considerable pressure on the economy, the government has solutions to stabilize the short and medium -term situation. « We found solutions to the Ministry of Finance and the National Bank for the stabilization of monetary, fiscal and budgetary policies, » said Barna. These solutions are essential for maintaining a balance between incomes and expenses, considering that Romania must manage a deficit which, although they are in normal parameters, can exceed the threshold of 7% depending on the forecast revenues.

Records and plans for the future

One of the strengths underlined by Tánczos Barna was the performance registered in April at the budgetary receipts. Romania has registered the best results in history, with over 50 billion lei collected from taxes, taxes and excise duties. This positive result is seen as a sign that the negative effects of the economic shock from the end of last year begin to dissipate, and the national economy is gradually recovering.

« If this trend is maintained, we can fall into the target of 7% deficit for the end of the year, » added the Minister of Finance. Barna also mentioned that the Ministry of Finance and NBR have sufficient reserves to cope with the economic challenges and to ensure a constant flow of revenues.

Reducing expenses and tax measures

In order to support the tax stability, the government has already started a process of reducing the expenses of goods and services, and the expenses with salaries and pensions will be carefully monitored. At the same time, the Government has started a program to reduce the number of budgets, an approach that is part of the general strategy of fiscal consolidation.

« We are on a good trajectory regarding the reduction of expenses and we will continue to emphasize the efficiency of the administration of public funds, » said Tánczos Barna. At the same time, Romania benefits from a record level of investments, especially due to the European funds and the National Plan of Redress and Resility (PNRR), which represents another positive point in the current context.

Economic challenges and proposed solutions

Despite the progress, the Minister of Finance acknowledged that the current period remains a huge challenge for both citizens and business environment. « We must say not to opportunism, propagandism and dilettantism and support economic stability and predictability, » Barna added. He stressed that Romania must be based on the wisdom and professionalism of its institutions in order to cope with this provocative economic context.