Romania cuts cash budget deficit to 7.65% in 2025

Business Forum
Romania's Ministry of Finance announced that the consolidated general budget execution for 2025 ended with a cash deficit of RON 146.03 billion (€28.65 billion), representing 7.65% of GDP, down one percentage point from the 8.67% deficit recorded in 2024.

Budget revenues totalled RON 662.70 billion (€130.01 billion) in 2025, up 15.3% compared to 2024. As a share of GDP, total revenues increased by 2.05 percentage points, supported by both current revenues and historic levels of European funds. The 2024 revenue level was influenced by exceptional collections from tax amnesty (RON 6.3 billion - €1.23 billion), and excluding this temporary factor, the contribution of current revenues to GDP growth is approximately 0.8 percentage points.

Expenditures totalling RON 808.73 billion (€158.65 billion) were managed with strict discipline, especially in the second semester. "We managed to reduce the cash deficit by one percentage point whilst ensuring record amounts for investments and honouring salary commitments in critical sectors such as healthcare, payment of medical leave and medicines," explained Alexandru Nazare, Minister of Finance. "We also succeeded in reversing the structure of investment financing by increasing the share of those financed from European funds compared to national funds."

Investment expenditures, including capital expenditures and development programmes, reached a record RON 138.20 billion (€27.11 billion), up 15.7% from 2024. Payments for projects financed from non-reimbursable external funds totalled RON 78.55 billion (€15.41 billion), representing 56.6% of total investment expenditures. This performance resulted directly from strategic renegotiation of the PNRR, moving major projects from the loan component to the grant component.

Personnel expenditures totalled RON 167.72 billion (€32.90 billion), recording a decrease of 0.6 percentage points (from 9.36% of GDP in 2024 to 8.78% of GDP in 2025), demonstrating efficient management of the budget apparatus relative to economic growth. The deficit reduction was directly determined by additional administrative measures for expenditure monitoring and fiscal compliance stimulation, implemented primarily in the second half of the year.

RECOMMENDED
Romania cuts budget deficit to 6.40% in first 11 months
Finance

Romania cuts budget deficit to 6.40% in first 11 months

Romania's consolidated general budget recorded a deficit of  RON 121.77 billion (€23.90 billion), equivalent to 6.40% of GDP, in the first eleven months of 2025, down 0.74 percentage points from 7.15% in the same period of 2024.

New Fidelis bonds listed on BVB
Finance

New Fidelis bonds listed on BVB

Romania's Ministry of Finance attracted almost RON 1.5 billion (€293 million) through its 11th Fidelis government bond offering of 2025, which began trading on the Bucharest Stock Exchange.

BID Romania joins €100 million fund for CEE growth companies
Finance

BID Romania joins €100 million fund for CEE growth companies

The Romanian Investment and Development Bank (BID) has committed €20 million to the Three Seas Initiative Innovation Fund, becoming the fifth national promotional institution to support the EIF-led investment vehicle targeting growth-stage companies across Central and Eastern Europe.

RECOMMENDED FROM THE HOME PAGE
Industry

ANAF launches virtual tax assistant chatbot

Romania's National Agency for Fiscal Administration (ANAF) has launched Ana, an intelligent virtual assistant designed to help taxpayers quickly obtain information about their fiscal obligations.

READ MORE
Business Forum  |  27 January, 2026 at 11:43 AM
Business Forum  |  26 January, 2026 at 5:13 PM