Business Forum • 26 June, 2026 at 9:16 AM
Romania has achieved a significant fiscal adjustment in the first five months of 2026, narrowing its budget deficit to RON 35.94 billion (€7.19 billion), or 1.75% of GDP. This marks a substantial reduction from the deficit of RON 64.23 billion (€12.85 billion), or 3.35% GDP, recorded during the same period in 2025.
Alexandru Nazare, Minister of Finance at the Ministry of Finance, said: "The five-month budgetary execution confirms the consistency of our public finance management. The deficit was almost halved compared to the same period in 2025. It is a good signal, especially because the adjustment was not made by blocking investments, but through closer control of current expenses and better use of European funds and the PNRR."
Total consolidated budget revenue reached RON 279.49 billion (€55.90 billion) as of 31 May 2026, representing a 9.2% year-on-year increase. Fiscal revenues anchored this growth, driven by net value-added tax (VAT) receipts rising 22.9% to RON 60.20 billion (€12.04 billion) following tax rate adjustments. Additionally, income and salary tax receipts climbed 13.7% to RON 29.22 billion (€5.84 billion) , whilst social security contributions rose 7.4% to RON 93.62 billion (€18.72 billion). European Union fund reimbursements also bolstered revenues, increasing 9.7% to RON 24.12 billion (€4.82 billion).
Conversely, total expenditure decreased by 1.5% nominally to RON 315.43 billion (€63.09 billion). Personnel spending dropped by RON 2.90 billion (€580 million) to RON 68.17 billion (€13.63 billion) due to caps on bonuses and salaries. Public investment spending expanded by RON 4.16 billion (€832 million) to RON 44.73 billion (€8.95 billion), heavily supported by EU and recovery funds. However, interest expense rose to RON 26.81 billion (€5.36 billion).