Antena 3 CNN Romania Dan Voiculescu, on the external debt of Romania

Dan Voiculescu, on the external debt of Romania

Dan Voiculescu, on the external debt of Romania
31 Aug 2015   •   17:44

The gaps in the state budget, such as the amounts for pensions payment and healthcare services, have been covered in recent years with borrowed money. This has increased Romania’s public debt up to a worrying level, Professor Dan Voiculescu points out in a post on his personal blog.

According to official data of the central bank, the public debt exceeded 60 billion euros in March 2015. This means a burden of 3,000 euros for every Romanian, from newborns to retirees, 500 euros more than two years ago.

"The report by the Court of Auditors for the period 2012 - 2014 shows that the money the state borrowed was used almost entirely to finance gaps in the budget, such as those in the pension and healthcare systems. The loans are useful if they are invested effectively and if they provide benefits that outweigh the costs, " Professor Dan Voiculescu warns.

The illusion of economic growth through foreign loans will cost Romania dearly, shows the same post on his blog.

"To avoid an economic and social disaster, we urgently need a government policy aimed at reducing public debt, a National Plan of Strategic Investments and concrete measures to support the middle class. In relation to the indebtedness degree of the US, Romania's external debt seems relatively small. But the US example is not valid. First, because Romania is not the US, " Dan Voiculescu notes.

The Government debt amounts to almost 40% of GDP, compared to 37.3% as it was in 2012.

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