Through the 2026 budget we are taking the first decisive step towards exiting the excessive deficit procedure, and by the end of the year we will be on the trajectory agreed with the European Commission, of 6.2% of GDP, the Minister of Finance, Alexandru Nazare, informed on Thursday evening, according to Agerpres.
'At the end of this year we will be on the trajectory agreed with the European Commission, of 6.2%, and we are basically closing a cycle that began at the end of 2024 with a deficit of 9.3%, reaching 6.2%, where we should have been. Of course, we are taking a major step forward, aiming to exit the excessive deficit procedure around 2029, so that we can finally remove this label we have carried for almost ten years: Romania penalised for maintaining chronic budgetary imbalances. I believe this is something expected by the markets, by the European Commission, by Romanians, and by all local public authorities, for whom this budget means an increase - significant additional funds, seven billion lei more for local authorities. In addition to these extra funds, there are also thousands of projects under the National Recovery and Resilience Plan that are very important this year. When we speak about the PNRR we are referring to motorways - including the Moldova Motorway - all important motorways financed through the PNRR and European funds. We are also talking about roads, hospitals, and critical infrastructure, from which millions of Romanians will benefit once these investments funded by this budget are completed,' Nazare stated during the briefing following the Government meeting in which the draft budget for the current year was approved.
He added that the aim was for the 2026 budget to be a fair and realistic one, accurately reflecting both priorities and the possibilities Romania currently has in the present context.
He also noted that space has been created for investment of around 164 billion lei, a significant increase compared with the 138 billion lei in public investment in 2025, with the most notable aspect being that the largest share of these investments represents an increase in European funds.
'This budget relies on the space it creates for European funds, particularly for the PNRR, which have increased significantly to almost 110 billion lei, including the SAFE component. It is very important to mention that when preparing the 2026 budget we had to accommodate an increase in interest payments of approximately 10 billion lei and an increase in defence spending of around 6 billion lei, while at the same time ensuring the reduction of the deficit, under the terms agreed with the European Commission, to 6.2% for the cash deficit and 6% for the ESA deficit,' he added.
On the other hand, he also referred to the risks generated by the conflict in the Middle East, noting that a moderate increase in inflation could be taken into account.
'We will soon have data from the National Bank of Romania, at the end of this month, and we are monitoring developments very closely. We believe that the key parameters from which we started are prudent ones, including the nominal GDP and the way in which it was calculated, as well as economic growth,' Alexandru Nazare also said.
When drafting the budget for the current year, the Government assumed economic growth of 1%, with a Gross Domestic Product estimated at 2.045 trillion lei.
The cash budget deficit is estimated at 6.2% of GDP, with revenues of 736.5 billion lei, increasing to 36% of GDP, and expenditures of 864.3 billion lei, representing 42.3% of GDP.
Tax revenues are estimated to increase to approximately 17.5% of GDP in 2026 (357.6 billion lei), compared with 16.9% of GDP in 2025. At the same time, social security contributions will rise to 11.1% of GDP (226.4 billion lei), from 10.9% of GDP. As a result of borrowing accumulated in previous years, interest payments will increase by around 0.4% of GDP, from 50.5 billion lei to 60.8 billion lei, according to a recent statement from the Ministry of Finance. Personnel expenditures will decrease as a share of GDP, from 8.8% to 8.2%, following measures adopted by the Government in the public administration sector.
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