* Florin Cîţu: The deficit hides any public debt and rising expenditures, and there is no fiscal consolidation in sight
Romania is far more prepared than it was in the past to handle next year's "financial storm" PM Emil Boc said. He justified the statement made yesterday, in an economic forum, by saying that this year is expected to end with an economic growth of 1.5-2% (after four quarters of economic growth), with a deficit of 4.4% (the goal for next year is for the deficit to fall to 1.9%, and the deficit target for 2013 has been set at 0%) and with a "public debt level of 32-33%, as the maximum level allowed in the EU is 60%".
However, economists feel different. Analyst Florin Cîţu said that Romania's goal is not to have a low deficit, but rather to lower expenses, which are actually rising continuously: "Public spending will increase in 2012 and in 2013, just as they did in 2011. Both cash expenses and those included in the consolidated budget have increased, and the gap between them is also rising. The deficit hides a growing public and rising government spending, which we do not see. Wage expenses have become greater than in 2008. There is no fiscal consolidation, the deficit can also be played using revenues. As for the public debt, which currently stands at 34%, it has increased from 16%, in 2008 and will also see an upward trend, as estimated by the IMF".
Emil Boc emphasized the fact that in 2012 the flat tax rate of 16% will be kept, as well as the basic taxes like social security contributions and the VAT.
He made these statements while addressing foreign investors who attended a forum on private public partnerships.
"There are already investors from Korea and the Gulf who are interested in the projects of our country", the PM said, and he stressed once again that Romania is outside any risk scenario, as it is increasi
