"We’ve laid expenses on a solid and healthy base, we’re not increasing taxes and we’re not bringing in new ones. Let’s all look past electoral goals and vote for this budget,” Tariceanu told the parliament’s plenary.
He added the budget would be fueled by the results of economic growth, tightened fiscal policies and a larger tax base.
Tariceanu assured the government will not eliminate the 16% flat tax, saying that despite criticism from the International Monetary Fund, the flat tax took budget revenue up 18 % in 2005, 24% in 2006 and over 30% in 2007.
"With lower taxes, budget revenue next year is seen at 39.3% of gross domestic product compared to 29% in 2004. This is a normal budget for a country that recently joined the European club,” Tariceanu said.
The Prime Minister concluded his speech urging lawmakers to be “politically responsible” and vote for the 2008 state budget draft.
Romanian lawmakers assembled in plenary session to debate the draft laws regarding the 2008 state budget and social insurance budget. The meeting is attended by 235 lawmakers.