How does the government see the public administration reform?

The Romanian government is making quick progress in passing the public administration reform

Sorin Iordan, 14.01.2026, 14:00

The public administration reform bill, one of the measures to address Romania’s budget deficit, has been posted for public review by the development ministry.

The bill amends several laws and includes, among other things, a provision regarding a 10% cut in personnel expenses in the central public administration, which however is not to affect the basic salaries of employees. The decrease will be made by reorganising institutions, by reducing bonuses and by personnel downsizing. At the same time, the number of jobs in local public institutions will be cut by 10%.

Also, over 6,000 personal advisor positions will be scrapped, while posts in prefect’s offices will be reduced by 25%. In addition, the salaries of some heads of public authorities will be capped, and the number of members of some boards of directors will be reduced.

The draft law also provides for doubling the tax on illegal buildings for a period of 5 years and restrictions for debtors who want to sell or buy homes and cars. At the same time, the text enables the state to withhold unpaid taxes and duties from disability or social assistance benefits. The development ministry announced that, following the implementation of this law, budget expenditures will be reduced by about EUR 660 million in 2026 and by almost EUR 1.13 billion per year in the period 2027 – 2030.

The Development Minister Cseke Attila says the measures included in the bill support the decentralisation and financial sustainability of local public administration and lead to more efficient services for citizens, social equity in tax collection and better financial discipline.

In turn, the Romanian PM Ilie Bolojan argues that this reform must be endorsed as quickly as possible, before the approval of the state budget for 2026, as any postponement means higher expenses:

Ilie Bolojan: “The reform in the administration concerns, on the one hand, reducing expenses and on the other hand strengthening the capacity of the administration, mainly the local administration, to be more efficient, to collect taxes, to be at the service of citizens, in such a way that the money collected from the increase in property taxes goes into investments and rather than to the salaries of some staff. Before approving the budget, we must endorse this reform, because otherwise, the Romanian budget cannot be finalised within these parameters.”

The PM mentioned that Romania pays interests of EUR 11-12 billion every year, which accounts for 3% of the Gross Domestic Product, and that the measures that have already been adopted, although unpopular, have helped balance things and gain credibility for the country in front of its partners and financial institutions. (AMP)