The budget deficit has decreased by 28 billion lei compared to 2025 and has fallen to 2.34% of GDP

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The consolidated general budget deficit stood at 48.08 billion lei in the first seven months of 2026, representing 2.34% of GDP, according to the budget execution report published by the Ministry of Finance. During the same period last year, the deficit was 76.44 billion lei, or 3.99% of GDP.

At the same time, budget revenues increased by 11.2%, while total expenditures rose by only 2.9%, the Ministry of Finance also announced.

“The seven-month data show that we are consistently maintaining the trend of reducing the budget deficit and stabilizing public finances. The 1.65 percentage point reduction in the deficit is evidence of balanced management, in which fiscal responsibility is combined with direct support for the economy. We have continued VAT refunds without interruption, returning over 20.4 billion lei to companies to ensure they have the necessary liquidity, and we have prioritized directing resources toward the major pillars of development, where investments from European funds and the National Recovery and Resilience Plan (PNRR) have increased by over 60%. “As we consolidate this healthier foundation for public finances, the next step is to transform stabilization into healthy and sustainable economic growth,” said Alexandru Nazare, Minister of Finance.

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Revenues of the consolidated general budget

According to data published by the Ministry of Finance, consolidated general budget revenues totaled 412.31 billion lei in the first seven months, up 11.2% compared to the same period in 2025. Tax revenues rose by 15.4% to 214.32 billion lei, and their share of GDP increased from 9.69% to 10.42%.

Furthermore, net VAT collections reached 88.55 billion lei, 26.5% higher than the level recorded during the same period last year. Gross VAT collections increased by 21.7%, while VAT refunds to the private sector rose by 4.6%, to 20.48 billion lei.

Excise tax revenue totaled 28.37 billion lei, up 6.4%, mainly due to a 10.9% increase in revenue from energy products.

Funds reimbursed by the European Union for payments made and donations reached 37.28 billion lei, 30.3% more than in the first seven months of 2025.

Revenues from payroll and income taxes totaled 38.34 billion lei, up 8.6%, while social security contributions reached 129.14 billion lei, 6.7% higher than last year’s level. Corporate income tax totaled 28.35 billion lei, up 8.3%.

Expenditures of the consolidated general budget

On the expenditure side, the consolidated general budget recorded payments of 460.39 billion lei, a nominal increase of 2.9%. As a share of GDP, public expenditures fell from 23.3% in the first seven months of 2025 to 22.4% in the same period of 2026.

Personnel expenses totaled 95.67 billion lei, down 4.1% from the previous year. Their share of total public spending fell from 22.3% to 20.8%.

In contrast, spending on goods and services rose by 11.2% to 59.6 billion lei, a trend driven primarily by payments in the healthcare system. On the other hand, interest expenses reached 40.12 billion lei, up 26.5%, representing 2% of GDP.

Social assistance expenditures reached 146.59 billion lei, down 0.6% compared to the first seven months of 2025.

Investments and projects financed by non-repayable external funds

Projects financed by non-repayable external funds totaled 45.88 billion lei, covering the 2014–2020 and 2021–2027 programming periods, the Modernization Fund, agricultural subsidies, and non-repayable assistance under the National Recovery and Resilience Plan (PNRR). Within this trend, payments for projects financed by non-reimbursable external funds increased by 39.1%, and expenditures related to the non-reimbursable component of the PNRR were more than twice as high as in the same period last year.

Investments reached 76.51 billion lei, an increase of 14.83 billion lei compared to the same period in 2025, representing a rise of approximately 24% in investments, while the budget deficit was reduced by 37%.

The Ministry of Finance notes that 71.05% of the total investment volume consisted of projects supported by European funds and the National Recovery and Resilience Plan (PNRR), in the form of grants and loans. Payments for these projects increased by 20.40 billion lei, or 60.08%.

“The results for the first seven months send an important signal of stability and fiscal responsibility. Romania is strengthening its credibility, both externally and internally, and this signal is very important for the markets, for investors, and for confidence in the Romanian economy. A country that conveys confidence and fiscal consistency is a stronger country. However, we must also correctly interpret the budget execution figures for the coming months. Starting in August, the annualized effects of the measures adopted in July 2025 will become apparent, so the basis for comparison will change and the differences compared to last year will naturally narrow. It is important to keep budget execution on track and on the path necessary to meet the deficit target for the entire year. The next phase focuses on the structural and sustainable consolidation of the fiscal adjustment. Maintaining spending discipline, a predictable wage policy, accelerating the absorption of European funds, and prioritizing investments are essential components for continuing on this trajectory,” emphasized Minister Alexandru Nazare.