Revenues decrease

Set back by the risks and faced with IMF pressures, the government was obliged to cut expenses during the last year, giving to the budget enough space to breathe.  But right when it seemed that the finances were being stabilized, the budget received another blow.

And this time, the problem are not only the high electoral expenses, but others, even bigger. Tax revenues have halted and the last three months were the most difficult. This April, the revenues were lower than two years ago, a situation that hadn’t been repeated for years. The Minister of Finances declared that this is a temporary situation and it has to do with the restructuring of the capital in our economy, because the business is making expenses for capital investments. But this argument falls apart by the statistics which show that during 2011 it is not expected a high level of investments. At least not more than during 2008, when the tax revenues not only did not change even after the record-breaking investments, but also marked the highest historical increase of 20%.

Maybe the government must look for the causes of this financial stalemate inside its administration, and not in the restructuring of the economy. Also a biased behavior against the business might temporarily secure revenues, but in a long-term point of view, it has been proved that a forced tax collection increases informality and corruption. Maybe the government should think more about this, starting by creating a fiscal administration that is more professionally capable and knows how to communicate with the business.

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