President Iohannis says evolution of public finance totally lame, hence PM Dancila's resignation paramount

The evolution of the public finances is 'totally unsatisfactory' said on Monday night President Klaus Iohannis, in a statement at the Cotroceni Presidential Palace, adding that Prime minister Viorica Dancila stepping down is paramount. 

'The resignation of Mrs. Dancila is imperative so as to make room to some responsible, competent persons, and in this context it is increasingly visible that Dragnea [Deputies Chamber's Speaker and leader of the main ruling Social Democratic Party, ed. n.] et alii have no solPution for a good, efficient ruling,' said Klaus Iohannis.

The president drew attention that Romania is under the procedure on the significant deviation of the budget deficit. 

'And if not corrected, it will aggravate. Only that there doesn't seem to be any intention and any corrective measure. I invite the PSD rulers to come to their senses,' Iohannis asserted. 

He said that the PSD governing is not able whatsoever to 'turn the economic growth into an increase of the incomes.' 

The president gave the example of the year 2017 when the Romanian economy recorded an over 7 percent growth and yet the incomes did not grow in proportion with it, on the contrary they were 3 billion lower than the PSD's own programme. Moreover, he indicated that in the first quarter of 2018 the total revenues are almost 5 percent below the quarterly budgetary programme, meaning they parked below the value estimated by the government. 

'Here fresh bad news keep showing up. The fiscal revenues, they should have increased as the economy grew, but instead, not only haven't they reached the programmed level and here the 5 percent scheduled quota has been missed, but they are even lower than the revenues of 2017's first quarter. And here we have a new counter-performance of the PSD: since the moment of the economic crisis, in the past nine years, it is for the first time when the fiscal revenues have dipped against the previous year,' Iohannis stressed. 

He specified that the revenues from the corporation tax have decreased against Q1, 2017, too. 

'This is just as serious as it is a reflection of the fact that the economy is roaring indeed, but only expenditures are roaring at the state budget, while the revenues - timeout,' said the president. 

Klaus Iohannis added that as regards the VAT incomes which, in his opinion, should have been 'the budget's main pillar' the non-achievement against the ruling programme is 9 percent. 

He emphasized that the excise incomes probably reflect 'the most accurately the disarray inside the public finances administered by the PSD.' 

'Although the prices have gone up, although the fuel excise has been re-introduced, which by the way was not forecasted in that valuable ruling programme, and yet the collection by ANAF [the Tax Administration National Agency, ed. n.] has parked at 12 percent below programme. This is the PSD's performance. Although the Romanians pay higher prices for almost everything, the state is still not collecting the due revenues, it is not building schools, neither motor ways, nor hospitals,' Iohannis said. 

President Iohannis stressed that the European funds are a new 'failure' for PSD. 

'As regards revenues, we are 37 percent below the scheduled value. In regard to expenditure, we are at 43 percent below the programmed value. It is way below what has been programmed. It is unacceptable that these European funds are not part of the government's priorities, but why would we be surprised, the PSD has all sorts of priorities: a quarrel with the central bank, a fight against the investors, the multinationals, it is only the European funds the gov't is not fighting against, because if they fought in the interest of the Romanians they would draw the money and carry out investments, at least from there, if they are not capable to do it from own funds,' the president concluded.