IMF calls for measures to combat tax evasion

The Minister of Public Finance, Sebastian Vladescu and IMF mission chief in Romania, Jeffrey Franks held a round of talks Wednesday, focused on means to raise state revenues by combating tax evasions.

"We discussed about possible means to raise state revenues by combating tax evasion. IMF said the country has made visible progress in this regard. We have also discussed several aspects of the laws that should be enacted before the next IMF review mission in Romania, such as fiscal responsibility law", said Vladescu, after the meeting with the IMF official.

The minister said he hadn't talked about a possible worsening of the institution's economic outlook on Romania. The International Monetary Fund anticipated a 1.3% economic growth for end 2010. "We hadn't talked numbers; we're waiting the release of March data on arrears and other indicators", said Vladescu.The next IMF mission in Romania is scheduled for April 27-29, when the institution could consider a review of its economic growth projection for the country, given the recent poor macroeconomic performance, Jeffrey Franks said Tuesday.

'We wait for the end-March figures, and we wait for the April 25 figures on arrears and also for other statistical data,' the MFP official said. After the first two months of the year, the general consolidated budget recorded a deficit worth 5.8 billion lei or 1.1 percent of the Gross Domestic Product (GDP), while the collections stood below estimates. The budget deficit target for the first quarter of 2010 was 8.25 billion lei. Romania must reduce its budget deficit down to 5.9 percent of GDP in 2010, from 7.3 percent in 2009.The general consolidated budget revenues stood at 25.2 billion lei in January-February, down by 3 percent compared with the same period a year before, and of 0.5 percent as GDP share respectively.