The Minister of Finance describes the serious situation in which Romania is: we were delivered an illusion
The budget of Romania was built on totally unrealistic figures and we were delivered the illusion of an economy in full swing, in order to justify “expenses that, in fact, we did not allow”, said the Minister of Finance, Alexandru Nazare.
“The first week since I took over the Finance portfolio again. What I found and What Romania looks like todaycompared to five years ago – during my first term?
I have found a vulnerable economy over time and an increasingly unstable budget foundation“, The minister wrote on his Facebook page.
He added that “aWe were told that Romania is growing ” And that “We were delivered to the illusion of an economy in full swing, but in reality the growth was pushed mainly by consumption.”.
“Thus, expenses that, in fact, did not allow ourselves. I forgot that we did not spend our money-but, for the most part, the money borrowed.
The budgets were built unrealistically, with exaggerated income estimates and undervalued expenses. And because no correction measures were taken on time, Romania entered a spiral of permanent deficits ”said the minister.
In his opinion, the reality is one: in the last five years, the budget deficit of Romania has been constantly over 6% of GDP, reaching critical peaks of over 9%. Everything, in the conditions in which the European rule recommends a threshold of maximum 3%.
“We spread the quilt more than we allowed, ignoring the rules of the game. The consequences? Greater interest on loans, trusted, and the public debt was doubled.
And yet, we behaved as if the resources were inexhaustible. I lived on duty, on money – more and more expensive – you have others, without really concern how we generate healthy money, from within. How we grow a competitive, innovative, resilient economy, capable of supporting the pace of public expenses.
Today, the critical point from which we leave is clear: the reconstruction of the state budget on a solid bases. We have a fundamental question to ask – and to assume: what can we collect correctly and efficiently and, especially, how much do we allow to spend realistically?
It's the moment of truth. Let's look in the mirror, recognize the mistakes and have the courage of change. Is the only way by which Romania can go furtherwith dignity and a viable economic model ”, the official said.
