The Government in Bucharest approved, on Thursday, the state and social security budget bills for 2026. In drafting Romania’s budget, the government factored in a reduction of the deficit to 6.2%, economic growth of 1%, and an inflation rate of 6.5% by the end of the year. The primary challenge, reducing the deficit to 6.2% of GDP, will be supported by an ambitious \u20ac2 billion cut in state spending, meaning there will be no room for income increases for public sector employees.<\/p>\n
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According to a government release, measures considered for expenditure include freezing gross incomes for personnel paid from public funds at December 2025 levels. Additionally, monthly food allowances and holiday vouchers will only be granted to employees with net salaries of up to 6,000 lei (approximately \u20ac1,200). The draft budget also stipulates that pensions and state child benefits will be maintained at December 2025 levels. Students will continue to benefit from 90% discounted rates for domestic road and rail transport, but only for routes between their place of residence and the city of their higher education institution.<\/p>\n
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The budget also accounts for a 10% reduction in spending across central and local administration. Prime Minister Ilie Bolojan provided further details:<\/p>\n
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\u201cThe decision regarding the increase of the gross minimum wage was adopted. Starting July 1, it will go up by 6.8% compared to today’s value, reaching 4,325 lei. Additionally, a state aid scheme was adopted to compensate for the increase in diesel excise duty, addressing haulers. The compensation was increased until the end of the year, from 0.65 bani to 0.85 bani. Through quarterly reviews, we will take into account market developments in the coming period\u201d.<\/p>\n
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According to the government, the overall objectives of the budgetary framework are to consolidate the sustainability of public finances, ensure a sustained annual pace of public investment and fiscal predictability, and boost economic recovery through support measures for small and medium-sized enterprises and the business sector.<\/p>\n
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While the state intends to reduce its spending by tens of billions of lei, investment budgets will rise this year to a record level of nearly \u20ac34 billion, primarily funded through the National Recovery and Resilience Plan (PNRR) and the SAFE programme. Furthermore, PNRR funds must be absorbed by the end of August. Government officials emphasized that this is a realistic, balanced budget, built on prudent parameters during a difficult period. Having been awaited by the economy, the markets and the Romanian public for nearly three months, the state budget and social security bills have been submitted to Parliament for debate and vote. (VP)<\/p>\n
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The Government in Bucharest approved, on Thursday, the state and social security budget bills for 2026. In drafting Romania’s budget, the government factored in a reduction of the deficit to 6.2%, economic growth of 1%, and an inflation rate of 6.5% by the end of the year. The primary challenge, reducing the deficit to 6.2% […]<\/p>\n","protected":false},"author":109,"featured_media":812876,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[184428,35194,158915,34042,38251],"coauthors":[115219],"class_list":["post-993492","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-2026-budget","tag-expenditure","tag-ilie-bolojan","tag-investments","tag-social-security-budget"],"acf":[],"yoast_head":"\n