1. Fiscal structural reforms
Bucharest, June 2016

2. Fiscal Structural Reforms
Overview
Main fiscal developments
Fiscal Structural Reforms
Further reform priorities
Expenditure efficiency
Tax administration
Bucharest, June 2016
Strengthen fiscal institutions
State owned enterprises

3. Strong fiscal consolidation but pressures are rising
Total spending dropped by about 6 percentage points of GDP from 2009 to 2014
Measures adopted previous year have increased the deficit close to the 3 percent SGP limit
Critical to preserve sufficient budgetary resources

4. Fiscal structural reforms will be key….
Main fiscal developments
Further reform priorities
Expenditure efficiency
Tax administration
Strengthen the fiscal institutions
State owned enterprises

5. Efficiency of public spending should increase significantly
Efficiency of capital spending in the EU 28

6. Improving tax administration

7. Strengthen the credibility of fiscal institutions
Romania’ fiscal rules fare well in comparison with the rest of the EU
But the actual enforcement of the rules is weak
The effectiveness of the rules should be strengthened

8. Addressing remaining structural issues – SOE sector
Romanian SOEs still have low profitability and many operate at loss creating large arrears
A drain on public finances in the form of foregone tax revenues, dividends and, to a lesser extent, subsidies
New legislation on corporate governance – a major step forward
Reforms to improve the professionalism of SOEs’ management and resource allocation

9. Mulțumesc!