The Ministry of Finance is preparing several scenarios with options for reducing budgetary expenses and increasing taxes, necessary to stabilize the budget deficit, which will be presented to the political parties.
The Minister of Finance, Tanczos Barna, stated that the decision on these measures will belong to the new coalition and the new government. He emphasized that the European Commission wants the measures as soon as possible.
“Our obligation is to present to the political parties all possible scenarios, with all impact analyses, and, depending on the discussions, a decision will be made. I repeat, our obligation is to conduct all possible analyses, all scenarios, all impact analyses with figures, with measures for 2025, 2026, and up to 2031, where the current fiscal plan ends.
And, based on the figures, based on the fiscal policy that will emerge from this analysis, at Cotroceni, we can make a decision,” stated Tanczos Barna, when asked if the scenarios circulating in the public space regarding the increase in VAT and the elimination of the minimum VAT rate for food and medicine are included in the analysis at the Ministry of Finance.
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According to the minister, there is no "pessimist" or "optimist," when asked what the most pessimistic scenario would be.
“We present all impact analyses, so that at Cotroceni, when discussions begin, we have an impact analysis on both expenses and revenues and can build a solid package. (...) There is a scenario with many measures in a package, depending on the expenditure side, to what extent they are reduced and what are the measures to reduce expenses, equally, the balance, the equilibrium part,” explained Tanczos Barna.
The minister mentioned that he cannot say when the approved measures are expected to be implemented.
“I cannot tell you for sure, it will be decided by the coalition that is forming. The requests of the Commission (European - ed.) are to be implemented as soon as possible, but the coalition and the new government will decide. My mandate is interim, it will end once this government's mandate ends. The new government has the analysis on the table, has the decision and the implementation time," stated Tanczos Barna.
“If someone from the new governmental arc requests an analysis on progressive taxation, certainly, the Ministry of Finance will present an impact analysis on progressive taxation,” he added.