Foreign investors need a predictable fiscal environment and Romania’s newly approved budget must take into account the investment need, states the American Chamber of Commerce, AmCham.
”In the context of the public debates around the State Budget project for 2017, AmCham Romania reiterates the importance of a balanced budgetary projection, focused on economic growth and investment that should enable stability, predictability and equally sustainability of the measures aimed at economic development,” say AmCham officials.
Reaching the 5.2% economic growth target, given the constraints of observing a maximum of 3% budgetary deficit calls for intensified efforts to increase the collection capacity and for a thorough implementation of the proposed investment plan.
”The ambitious raise of the projected revenues of 254, 72 billion Ron compared to the 223, 72 billion collected in 2016, must be based on increased budgetary revenues, avoiding any changes of the fiscal policy. To this end, it is critical to accelerate ongoing projects to increase the administrative capacity of the fiscal authorities to collect budget revenues and to fight tax evasion, along with efforts to modernize public administration in general.”
In AmCham’s view it is of utmost importance that the commitment to the 39,4 billion Ron for investments is observed, as it will have a major contribution to reducing gaps in key sectors for Romania, such as education, healthcare, infrastructure, R&D, provided it is strategically channeled.
„It is detrimental for Romania’s medium and long term development to reach budgetary targets by way of cutting investments or changing the fiscal policies that directly and immediately affect the business community, the main contributor to the state budget. At the same time, we recommend that UE Funds absorption remains a central objective in the Government agenda, reflected as such in the state budget project.”
Given the importance of the budgetary framework for the business environment, AmCham Romania emphasizes the need for a genuine and open consultation process with all relevant stakeholders, as should be the case for all public policies impacting the business community.
