The draft budget for next year is configured on an economic growth of 2.8%, in the context in which the economic shock caused by the pandemic is one of the most significant in recent history, shows the draft state budget law for 2023 published on Tuesday by the Ministry of Finance.The gross domestic product in current prices is estimated to increase to 1,552 billion RON, from 1,396 billion RON this year.The ESA budget deficit in 2023 is calculated at 4.4% of GDP, and it will reach 2.9% of GDP in 2026, falling within the provisions of European regulations at the end of the forecast horizon (year 2024), respectively 2.95% of GDP. In 2024, the cash budget deficit reaches the value of 2.95% of GDP, with which it falls within the European regulations, reads the cited document.On the general consolidated budget, total expenses are expected to be 607.924 billion RON in 2023. Budget expenses next year will represent 39.17% of GDP, with a downward trend in 2026. Investment expenses amount to approximately 112.1 billion RON, representing approximately 7.22% in GDP, and in 2026 they will reach approximately 154.2 billion RON.Budget revenues in nominal terms are estimated at 539.6 billion RON (34.77% of GDP), increasing in nominal value over the reference horizon, reaching 655.1 billion RON in 2026 (32.78% of GDP). Social insurance contributions (30.1% of total revenues) account for the largest share of budget revenues in 2023, followed by VAT (21.1%), amounts received from the EU (13.2% of total revenues), and excise duties (7.1%).According to the draft budget, inflation at the end of the year would slow down to 8% in 2023, compared to 15.2% in 2022, while the current account deficit will decrease to 8.5% of GDP, from 8.8 % this year.Salaries are expected to rise 1.7% next year, after a 2% decline this year.
Henry Páll Wulff, a German citizen living in Romania and former co-chair of Volt Romania political party, emphasizes how the disparate challenges and shifting dynamics in Romania underline the importance of understanding global trends. The year 2024 brought a wave of significant elections worldwide, from the United States to Europe and beyond. Against this backdrop, […]
Social Democrat (PSD) leader Marcel Ciolacu has been appointed by president Klaus Iohannis to form the new government, with the prime minister set to request a vote of confidence from Parliament later today, December 23. Ciolacu thus returns to Victoria Palace as head of government, backed by the newly-emerged ruling coalition. The new cabinet will […]
Igor Feio, a Portuguese citizen living in Romania for over ten years, shares his view on the Constitutional Court's recent decision to cancel the first round of the presidential elections in the country. On November 24, about 9 Million people expressed their vote in the 1st round of the Presidential Elections. It was a somehow […]
Romanian members of Parliament elected new presidents for the Senate and Chamber of Deputies after negotiations within the new ruling coalition formed between the Social Democrats (PSD), the National Liberal Party (PNL), the Hungarian minority party UDMR, and the ethnic minorities group. The coalition elected PNL interim leader Ilie Bolojan as the new head of […]
Romania is quickly becoming one of Europe’s most desirable destinations for expats, thanks to its affordability, vibrant culture, and strategic location in the heart of Europe. Whether you’re considering citizenship, a nomad visa, or residency, each pathway offers unique benefits tailored to different lifestyles and goals. In this article, we’ll explore these options in depth […]
Amsterdam-based DRI, the EU renewables arm of Ukrainian energy company DTEK, announced the signing of the “largest physical solar power purchase agreement (PPA) in Romania” with OMV Petrom, the leading integrated energy producer in Southeastern Europe. The agreement groups three PPAs with OMV Petrom over an 8.5-year period for approximately 100GWh per year at a […]
