Page 23 - Economic Outlook Romania 2019

Fiscal backdrop & outlook: summing up

• Revenues in line with expectations, spending out of control

• Low fiscal revenues and tax base, poor tax collection, no reforms

• Ballooning rigid spending exposing debt metrics over medium term

• Lack of automatic stabilisers

• Fiscal policies to favour income redistribution from capital to labour

• Burning fiscal buffers. Debt to GDP was 12% ahead of the Great Recession

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