IMF lets Government decide if it hikes taxes or cuts spending

The IMF is not imposing one specific means of cutting the budgetdeficit, with the Government having a choice between cutting publicspending and hiking taxes, said Jeffrey Franks, head of the IMFmission that evaluates the stand-by arrangement, in the "20 YearsLater" show broadcast by ProTV on Sunday.
Romania committed in its arrangement with the IMF to cut the budgetdeficit from over 7% of GDP last year to 5.9% of GDP in 2010 and toless than 3% of GDP by 2012.
The authorities announced a series of measures to cut spending, butfew have so far been put into practice, especially as far as salaryand pension spending is concerned. In the letter of intent thatcomes in addition to the stand-by arrangement, the Government hascommitted to adopting additional measures to fill the revenue voidif the deficit cut does not meet this year's target.
Finance Minister Sebastian Vladescu said only spending cuts havebeen considered so far, but no revenue increase, which could beobtained from a prospective tax hike.