Romania’s budget deficit goes down
Romania managed to curb its budget deficit by 1.4% in the past year, the most significant correction at European level, although it still has the biggest budget deficit in the bloc
Sorin Iordan, 23.04.2026, 13:50
Romania has managed to trim its budget deficit from 9.3% of the GDP in 2024 down to 7.9% in 2025, data released by the European Statistical Office say. So, according to the European calculation methodology, which includes all state expenses and obligations, the country has managed to bring down this deficit by 1.4% of the GDP, in the most significant annual correction of all the member states, against the biggest deficit registered at EU level. Other member states have registered more moderate adjustments such as Poland, which has a deficit estimated at roughly 7.3% of the GDP, Belgium, 5.2% and France 5.1%, whereas Italy managed to adjust it by 0.3%.
The Eurostat also says that Romania’s government debt went up by 59.3% of the GDP in 2025, from 54.8% in 2024. Romania’s GDP last year stood at 376 billion Euros, a roughly 30.5 billion increase as compared to that in 2024. The result Romania obtained is better than the initial estimates of the markets and international institutions, which indicated a deficit between 8.2% and 8.4% of the GDP for the year 2025. Romania’s Prime Minister, Ilie Bolojan, said this evolution confirms the effectiveness of the budgetary balance measures implemented in the second part of last year and is marking Romania’s comeback to the fiscal trajectory assumed with the European Commission through the Fiscal-Budgetary Plan.
The faster the correction, the faster the economic recovery, and this will become visible in the standard of living, the Prime Minister went on to say. In a press release, the Finance Ministry in Bucharest says the significant reduction of the aforementioned deficit has been done without putting investment on hold and without abandoning Romania’s major modernization projects.
Bucharest has maintained investment at a higher level of 7.2% of the GDP, the highest in the European Union, which allowed for the continuation of the projects aimed at developing the country’s infrastructure and the implementation of those funded by means of the European funds. At the same time, the state has significantly reduced its historic debts so that in 2026 Romania occupies a more stable fiscal position than it had at the beginning of the previous year. Field minister Alexandru Nazare, says that through fiscal consolidation Romania is regaining its economic freedom and its ability to make its own decisions for the future.
“Every reduced deficit means lower pressure on interests, less vulnerability to external shocks and more room for development, investment and durable prosperity,” Nazare said admitting that this accomplishment entailed efforts and responsibility from the entire society. It is known that the measures of reducing the budget deficit have triggered discontent among the population, as their impact is even heavier against the background of the latest Middle East crises, which entails even more price hikes. Romania still boasts the highest inflation rate in the entire European Union of 9%, three times higher than the European average of 2.8 %.
(bill)
