Consumption is the main element of the Romanian economic growth, and this economic model must be changed, says the minister of public finance Eugen Teodorovici, at a conference organized by the European Commission Representation in Romania.
“It is true that consumption is the main element for economic growth. This situation must change urgently, in the shortest term. The change will start at least in the way the Government strategy is defined as we already have some measures in the Governing Program that point in this direction,” Teodorovici said.
He specified that there is a need to support public investments by changing public procurement
legislation. “Our intention is to change the legislative framework on public procurement, to simplify it in the way is defined at European level. It will be an important element for accelerating the investment side
both at local level and in big infrastructure projects,” said Teodorovici.
According the government official, the budget needs to be more modern, more logical and more pragmatic.
“Next year, the 2019 budget must be thought in modern and pragmatic ways. There are many areas
where unnecessarily large amounts of money are spent instead of being targeted in areas where spending is needed,” Teodorovici pointed out.
According to the latest data from the National Institute of Statistics, Gross Domestic Product estimated for 2017 climbed 6.9 percent in real terms compared to the previous year.
From the point of view of GDP use, the increase was mainly due to household final consumption expenditure, which increased by 10.3 percent, contributing with 6.4 percent to GDP growth.