Finance Minister: budgetary revenue growth in 2018 will be generated by improving collections, sale of heavy water and 5G licences

Public Finance Minister Ionut Misa stated on Tuesday that improving tax collection and the sale of heavy water and 5G licences will generate revenue growth in 2018.

Misa said: “We do not think that revenue is overestimated for next year. In 2017, over 10 months, compared to the year 2016, we have a revenue growth of RON 12.85 billion. I don’t think that we can still say that revenue is not sustainable for the future. We’ve also brought up elements that will generate a growth in revenue, both from the point of fiscal revenue – with a few elements that will improve collections such as the implementation of cash registers – and non-fiscal revenue through the sale of heavy water, where we have the best percentage in the EU, and the sale of 5G licences.”

Misa added: “Measures have been taken for the compensation of overtime with time off only, and not through gift vouchers, prizes, and meal, holiday or pension compensation payments. In 2018, credit authorising officers of central public administration institutions and authorities will have to reduce spending for the maintenance and operation of the institution by 10% compared to 2017, with a few exceptions. Furthermore, they won’t be able to purchase automobiles or furniture, with a few exceptions, and job vacancies will be blocked.”

The minister said that the main priorities of the Government for 2018 are health, education and infrastructure – these sectors will benefit from additional investments, as well as an improvement in the quality of activities through more stimulating salary packages. In the health sector, investments will be worth RON 38.5 billion (EUR 8.5 billion), which is 4.2 percent of next year’s GDP – a 42.5 percent growth from 2017.

The 2018 budget project is built on an economic growth of 5.5 percent, an average euro exchange rate of RON 4.55, and an average monthly salary of RON 2,614. Cash budgetary deficit is estimated at 2.97 percent of GDP, while the ESA deficit would be 2.96 percent.

According to the Finance Minister, projected budgetary revenue for 2018 is RON 287.5 billion (31.7 percent of GDP), and spending is estimated at RON 314.5 billion – 34.6 percent of GDP.

Special parliamentary commissions have started, on Tuesday, the debates for the 2018 budget project.