PSD insists on the Economic Stimulus Program

At the same time, PSD is ready to provide Coalition partners with additional details for a full understanding of the positive effects that such a program can generate.

The PSD Program offers economic stimulus solutions, with zero expenses from the Government and with a positive impact on the state budget.

„The main mechanism proposed in the PSD Program is the tax credit, through which new investments in strategic industries can benefit from tax deductions, for a determined period, if they meet certain indicators regarding the amounts invested and newly created jobs. The PSD Program also proposes other facilities to stimulate new investments, such as guarantees for SMEs, accelerated depreciation, or additional deductions for investments in research and development,” PSD reports.

The granting of tax credits and other facilities for new investments represents a positive approach to reducing the budget deficit, through additional revenues collected from VAT associated with new industrial products, from taxes and duties related to salaries paid to new employees, but also as a result of the multiplier effect generated by new businesses.

The solutions proposed in the PSD Program have been successfully applied in many European countries and represent an alternative to the austerity policies implemented in recent months in Romania. In contrast, the PSD measures rely on an increase in budget revenues by encouraging economic activities and based on a positive partnership between the Government and the business environment.