Ilie Bolojan announces how much Romania pays for the borrowed money: “This costs the Moldovan Highway”

“Romania pays this year interest rate of 11 billion interest. It costs the Moldovan Highway,” said Prime Minister Ilie Bolojan on Tuesday, referring to the budget deficit that must be covered by the fiscal measures taken by the Government.

Asked, in an interview with Antena 3 CNN, if “you are now resigning on the table?”, The prime minister did not offer a direct answer, but he said: “To answer you you have to allow me to make a correct picture of the situation. Plus, the money we borrow, every year the cost of loans is increasing.

“It means the Moldovan Highway. A7 costs 11 billion euros. Only the interest of the Moldovan Highway left. The whole Anghel Saligny program, the signed contracts were 55 billion lei, so 11 billion euros. Because of these interests I do not see the Untostra of Moldova, I do not see these things. That means these loans,” the prime minister continued.

“We can no longer go like this. If we continue any prime minister who will not be able to pay pensions and salaries. Such differences have been corrected by all countries by methods that have not been invented in Romania, you have to increase revenues if you need, Romania has one of the lowest tax systems, we had to increase the income.

What Ilie Bolojan also states about reducing the deficit and fiscal measures taken:

• “Then we have to lower expenses. It cannot be from day to day. You do not work on small areas where the impact is unphetic. You have to work on big blocks. A large block is the local public administration in Romania.
• Only in our own appliances we have 130,000 employees, in the other devices, social assistance, child direction, there are at least so much. If we want to balance things and not get to where we left then we must reduce our expenses including in the local public administration.
• But I do not agree to increase taxes and take the money in the black hole of the local administration. When I saw that the proposed solution only scratches the local administration a little, I have this responsibility towards the Romanians. This was the condition: if we put the reform in the government program, then let's do it.
• We have adopted two packages so far, and in the second pack was this local public administration component, which had three aspects. One was to strengthen their ability to do their duty, a generally accepted thing, then to create conditions for decentralization, for example the authorization of gambling to do the City Hall, today the City Hall cannot, and the third component was the efficiency. Absolutely necessary. We had to increase them.
• We have no funding to continue investments. To be continued it means that people have to contribute with a sum of money. It does not seem normal to me to put this additional tax on the Romanian households, and the money to take them to the black hole of the public administration.
• In this situation, knowing that if we do not correct the expenses we reach a well-right foundation I have this responsibility towards the Romanians. No one is happy, but if you are forced to do this at least you do not do it for nothing, that it would mean to play the Romanians. This was established in the government plan. ”
• Asked if it is true that the real budget deficit is 10-11% of GDP, the prime minister replied: “It is not in this situation, but it is obvious that between the data we have officially received at the installation of this government and the data we found were many future payment commitments, expenses that were not taken in the budget. a deficit below 8% with all the measures we took“.

“I think it was over 9%,” Bolojan said, asked how much the budget deficit of Romania was at the moment he took over the position of prime minister.