Prime Minister Ilie Bolojan says that, during this period government representatives are working on drafting the state budget for 2026, on "realistic assumptions", emphasising that the goal is "a budget focused on recovery and investment".
"The savings achieved in the second half of last year allowed us to reduce the budget deficit by over 1% of GDP, below the assumed target of 8.4%. We honoured our commitments and regained credibility with investors and financial markets. In 2025, we reduced the deficit without cutting investments, which amounted to 137.5 billion lei, representing over 7% of GDP. European funds, including those from the PNRR, recorded a high level of over-contracting, and projects were prioritised. We maintained financial discipline and went through a first stage of reducing state spending. We increased budget revenues, including by raising some taxes. These adjustments led to an economic contraction and created additional difficulties for many Romanians," the Prime Minister wrote on his Facebook page on Wednesday evening, agerpres reports.
According to him, "without increasing taxes", there is "a solid basis for recovery this year".
"We are working on preparing the 2026 budget on realistic assumptions. The deficit target is just over 6% and will be finalised in the coming period. Inflation is expected to decline to 4%. Our objective is a budget focused on recovery and investment. More than 15 billion euros will come from European funds, through the PNRR and cohesion policy. This money will be invested in infrastructure, the economy and better public services," stated Bolojan.
He also announced that at the beginning of February the government will assume responsibility for legislation aimed at restricting state spending in the public administration and support economic recovery, with the state budget to be adopted subsequently.
"I know that, for now, the negative effects of the deficit reduction are being felt in everyday life. In the coming months, following the recovery measures adopted and on a healthier economic basis, Romania's economy will enter a recovery path," Ilie Bolojan pointed out.
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