The solution to raise taxes and contributions to boost budgetary revenues considering the companies and people are already heavily burdened is not viable and will not allow the state to narrow the deficit, NBR Governor Mugur Isarescu warned yesterday.
In a harsher speech than the audience had been used to, Isarescu openly criticised the political class for having delayed cutting public spending after the onset of the economic crisis in the autumn of 2008 and for constantly trying to adjust by boosting revenues, that is by higher taxes.
"No one wants to cut (public) spending and the situation cannot be resolved without conflicts. How does one solve the problem - with a tax burden put on companies? Companies are grumbling and not without reason. They are all complaining about the exaggerated taxes; taxation, red tape are huge," Isarescu told the "Romania 2010: Economic and financial constraints and social imperatives" seminar, organised by the National Bank of Romania together with "Saptamana Financiara" weekly and "Financiarul" daily.
He pointed out the discrepancy between the very heavy fiscal burden for companies - for 100 RON of revenue, taxes and contributions amount to 80 RON, and the very low level of budgetary receipts, a little over 30% of the Gross Domestic Product.
The solution to raise taxes and contributions to boost budgetary revenues considering the companies and people are already heavily burdened is not viable and will not allow the state to narrow the deficit, NBR Governor Mugur Isarescu warned yesterday.
In a harsher speech than the audience had been used to, Isarescu openly criticised the political class for having delayed cutting public spending after the onset of the economic crisis in the autumn of 2008 and for constantly trying to adjust by boosting revenues, that is by higher taxes.
"No one wants to cut (publi
