Finance ministry prepares report on the country’s financial situation

The report on Romania’s financial situation, requested by both the Social Democratic Party and Prime Minister Luca Niculescu is soon to be presented to the public.

Daniela Budu, 11.11.2026, 13:50

The report on Romania’s financial situation will be made public in the next few days, once the figures submitted by all ministries have been consolidated, said Finance Minister Alexandru Nazare, who added that the document is nearly ready. The presentation of the report comes amid political disputes regarding the budgetary situation inherited by the current government, dominated by the Social Democratic Party, which has alleged the existence of a budget hole left by the previous government, led by the Liberal Ilie Bolojan.

Having served as Finance Minister in both administrations, Alexandru Nazare warned that these disputes could undermine Romania’s financial credibility and drive up the state’s borrowing costs. He also said that the funds from the 5th and 6th payment requests under the National Recovery and Resilience Plan are essential for financing investments, given that the 2026 budget was built around this program.

As for next year, the minister reiterated that the government does not intend to introduce new taxes, but focus instead on reducing public spending to maintain budgetary balance and safeguard the country’s sovereign rating. Alexandru Nazare:

“I don’t believe it’s in Romania’s best interest to raise taxes, as our goal is to achieve economic growth. We want to avoid measures that could hinder that growth. On the other hand, we need concrete action on spending, not just rhetoric, in order to substantiate and lend credibility to the spending cuts. These two approaches must be integrated. We hope to do this in the most credible way possible, so that the overall budget for 2027 is credible, and it is vital for Romania that it be so, in order to avoid a potential downgrade in January, February and March.”

Minister Alexandru Nazare also said that, for the first time, the budget will be drafted using an electronic application in which each ministry must introduce and justify its funding programmes and investments. The goal is to gain a clearer picture of state expenditures and to better prioritise projects. He also announced that the minimum tax on turnover will be eliminated as of January 1, 2027, and discussed the conditions necessary for reducing the tax burden, in the context of drafting next year’s budget.

The minister said Romania must sort out its spending and investments over the long term and lay the foundations for healthy economic growth. He warned that maintaining the country’s sovereign credit rating depends on the credibility of the budget and the continuation of fiscal consolidation. The Ministry of Finance aims to finalise the 2027 budget by the end of this year, ensuring that Romania avoids the risk of a downgrade to its investment-grade rating.