Parliament to vote 2025 budget
Romania's 2025 budget has been expedited to Parliament for an emergency approval
Roxana Vasile, 03.02.2025, 13:50
The government has approved Romania’s draft budget for 2025, built on an economic growth rate of 2.5%, an average inflation rate of 4.4% and a deficit of 7% of GDP. Finance Minister Tánczos Barna argues the budget is moderate and balanced, based on a cautious forecast, which focuses on investments with record allocations of some 30 billion EUR. The budget provides enough money for salaries, pensions and social benefits, the Romanian official gave assurances, although these will all remain at the level of 2024, after the government had already frozen, in early January, all public sector salaries by government decree. In turn, pensions will no longer be increased in line with the evolution of the inflation rate. Similarly, the government has announced the restructuring of central public institutions and state-owned companies, which are expected to cut their expenses, but also provide quality services.
It is essential that the budget balance be maintained over the next seven years, until the deficit is lowered to 3%, in order to be able to manage the structural vulnerabilities of the national economy, Minister Tánczos Barna also said. The Ministry of Transport will receive additional money to continue the infrastructure projects that have already started, in addition to the Ministries of Energy, Labor, Education, Health and European Funds. 2.5% of the GDP has been allotted to the modernization of military equipment. The budget of intelligence services will be higher this year, with the largest increase allotted to the Special Telecommunications Service, for the modernization of IT infrastructure and the organization of the presidential and local partial elections. On the other hand, Parliament, the presidency, as well as the Ministries of Agriculture, Development and Culture will see their budgets slashed.
Regarding public debt, Finance Minister Tánczos Barna explained that it is on a downward slope, but the effects of previous loans will be visible for a long time in interest expenses. Romania should produce more and borrow less, Minister Barna argued. Amid protests staged by key categories of employees disgruntled with the authorities’ plan to cap their revenues, and also considering the European Commission’s request that Romania reduce its deficit, the 2025 budget bill was submitted to Parliament and is expected to be debated this week, in an emergency procedure, at the start of the parliamentary session. The debate and the vote are expected to unfold without a hitch against the backdrop of a mobilization of MPs of ruling coalition parties, which at any rate hold the majority. (VP)
