BNR: Corrective fiscal measures might be adopted to maintain budget deficit target to 3 pct of GDP

The set of the measures that will probably bring the implementation of unitary salary law will reduce its expansionist effects and it will be possible the adoption of corrective fiscal measures in order to maintain the budget deficit target within 3 percent of GDP, said some members of the Council within BNR meeting, according to the BNR memorandum.

“The members of the Council saw a significant growth of uncertainties for the medium and long term of the fiscal policy line and the revenues line, that will generate high uncertainties and risks for both sides for the most recent forecast on medium term for inflation. The main sources of these are on one side the unitary salary law that was recently issued and on the other side, the new measures and law initiatives announced for taxes, of salaries and pensions, as well as the functioning framework of firms, with their potential implications, both on fiscal policy and the fiscal impulse, as well as on the revenues of companies and population, including the investment and consume behavior,” says BNR.

According to the release, the fuzziness, as well as the absence of some frames regarding the concrete measures and the implementation schedule, make the evaluation of macroeconomic affects and potential structural effects impossible for the moment.

“High issues regarding the budget under the 3 percent of GDP deficit will be registered the next year, said some members of the Council, in lack of some compensation measures. At the same time, it was registered a possible extension of the rhythm under expectations of structural European funds absorption, at least for the near future, and of some affiliated investments within the framework 2014-2020,” says the release.

“Analyzing the future possible evolutions of the main macroeconomic indicators, the members of the Council observed that the new short term forecast reconfirms the continuation perspective of inflation acceleration the next months. It was observed that the annual inflation rate will probably be maintained on a slightly superior path than the most recent forecast of BNR,” adds BNR.