FinMin Nazare: Romania enters 2026 with 7.65pct budget deficit; target is to go down below 6pct

Romania enters 2026 with a budget deficit of 7.65% of GDP, with the target being to lower it to 6% of GDP, while maintaining a very large dpensind envelope for public investments, Finance Minister Alexandru Nazare informs on Friday.'We are entering 2026 with a deficit of just 7.65% of GDP, but with public finances placed on a healthier footing, offering greater predictability for the business environment. The target is clear: to lower the deficit to 6% of GDP, while maintaining a very substantial level of spending on public investment,' the Finance Minister said in a message read by the President of the National Agency for Fiscal Administration (ANAF), Adrian Nicusor Nica, at the launch of the study 'The Socio-Economic Impact of the Soft Drinks Industry in Romania'.Nazare underlined that the 2026 budget is designed as a budget for economic recovery, built on investment and on constant dialogue with the private sector.'We managed to correct the deficit by more than one percentage point of GDP, below the target agreed with the European Commission, once again showing that it can be done without cutting investment,' Nazare said.According to him, deficit reduction is based primarily on budgetary discipline and the reconfiguration of investment financing, not on successive tax increases.'The direction is towards stabilisation and fiscal simplification, not increasing the tax burden on companies. At the same time, 2026 is decisive from the perspective of European funds. We will have at least 20 billion euros available for investment through the National Recovery and Resilience Plan (PNRR), cohesion funds and agricultural funds. If we rapidly turn these resources into concrete projects, we can strengthen the production base, exports and jobs in the economy,' he added.Nazare also outlined the steps taken by the Government in recent times to improve efficiency and simplify the fiscal framework.'First, we reduced the additional turnover tax to 0.5% and adjusted the micro-enterprise regime in order to protect Romanian capital and avoid situations where companies are artificially pushed into insolvency. Second, we reintroduced bonuses for companies that pay their taxes on time, rewarding correct and responsible behaviour. Third, we increased the threshold for applying VAT on a cash basis, allowing more SMEs to pay VAT when they actually collect invoices, not when they issue them. And last but not least, we reopened the possibility of returning to micro-enterprise status, reducing bureaucracy and administrative costs,' Nazare emphasised.Finally, he stressed the need for greater discipline in public spending, more transparency and greater responsibility in how tax revenues are used.