The budget deficit is shrinking
The Ministry of Finance in Bucharest announces the evolution of the budget deficit after the first eight months of the current year.
Mihai Pelin, 28.09.2026, 14:00
In Romania, the execution of the consolidated general budget in the first eight months of the year ended with a deficit of approximately €11.3 billion, which is about €5.1 billion lower than the figure recorded in the same period of 2025, the Ministry of Finance announced. In nominal terms, the budget deficit was reduced by over 30%, reaching a share of gross domestic product of 2.89%, down from 4.51% in 2025.
During the period under scrutiny, revenues of the consolidated general budget grew by over 11%, while total state expenditure increased by just slightly over 4%.
The Ministry of Finance specifies that a major contribution came from VAT collections, which totalized 103.35 billion lei, approximately 25.2% above the level recorded between January and August 2025.
Receipts from income and salary taxes grew by 8.1%, while corporate tax revenues also posted a gain of 9.1%. At the same time, social insurance contributions went up as well, by 7.1%. The same happened with property taxes and fees, which registered an increase of over 30% compared to the same period in 2025.
Interim Minister of Finance Alexandru Nazare believes that the data confirm that the measures adopted by the government are producing beneficial effects, specifying that funding from European funds and through the National Recovery and Resilience Plan continues to support the economy and Romania’s development projects.
Minister Nazare warned, however, that in the upcoming period every decision to spend public money must be weighed responsibly in the context of high pressures on the budget, but also of external factors that can influence the evolution of the Romanian economy. He also recalled that the budget deficit target for the whole of 2026 is 7.2% of GDP.
The figures regarding the budget deficit come in a context in which Romania is set to undergo, this week, a new sovereign rating test. On October 2, the financial rating agency Standard & Poor’s is expected to publish its country report. The institution’s mission is already in Bucharest and is holding talks with Romanian officials.
Liberal Interim Prime Minister Ilie Bolojan says public finances are on a balancing trajectory, while Alexandru Nazare points to the budget execution and the continuation of fiscal consolidation as Romania’s main arguments.
The stake is preserving the rating in the investment-grade category, on which financing costs and investor confidence depend. A potential downgrade could have major effects on the Romanian economy. Among these are the withdrawal of a portion of institutional investors, reduced foreign direct investment, additional pressure on the exchange rate, and higher borrowing costs for both the state and private companies.
This summer, the financial rating agencies Fitch and Moody’s maintained Romania’s rating in the investment-grade category. (VP)
