Ministry of Finance allocates 4 billion RON to support public investments and pay off arrears in transport,agriculture,development

The Ministry of Finance is allocating over 3.8 billion RON to support public investments and pay off arrears in key sectors such as development, transport and agriculture, according to a press release from the institution, sent on Wednesday."The Government approved today an Emergency Decision, by which the Ministry of Finance allocates almost 2.5 billion lei, intended for the payment of arrears of the Ministry of Development, Public Works and Administration (MDLPA) and the continuation of public investments. In addition, through direct redistributions operated by the Ministry of Finance, in the last week alone, over 1.35 billion were allocated to the Ministry of Transport, the Ministry of Agriculture and other management authorities of European funds that finance projects in the field of regional development. The Government is also to approve an Emergency Decision by which it allocates almost 2 billion lei to the National Health Insurance House, funds intended for the payment of essential health services, medicines and outstanding medical leaves," the press release reads.These measures are possible in the context of a favorable evolution of the fiscal-budgetary situation in the last 6 months, supported by efficient coordination of the programming of budgetary and European funds, by the adaptation of the National Recovery and Resilience Plan to the realities of implementation and by the firm measures adopted by the Government in terms of budgetary discipline and revenue growth.The reallocations of funds made do not influence the level of the budget deficit, as they were carried out within the budget programming approved by the last rectification, respecting the deficit target of 8.4% of GDP, the document states.With the 2.5 billion RON allocated, MDLPA will be able to make outstanding payments related to projects from the Anghel Saligny Program worth over 1.5 billion RON. Also, 900 million RON will be allocated to pay arrears registered in the case of other projects of the National Local Development Program (PNDL) and of the programs carried out through the National Investment Company."The efficient pace of revenue collection in recent months, as well as the measures adopted by the Government to reduce the budget deficit, create the necessary space for these significant reallocations of funds. These allow us to pay off important debts of ministries at the end of the year - such as, for example, the arrears accumulated at the Ministry of Development, worth 2.5 billion RON, which we now manage to cover almost entirely. "If these amounts had not been paid this year, the budgetary pressure would have been transferred to 2026, through the accumulation of additional arrears, the delay of payments to suppliers and beneficiaries, the blocking or postponement of public investments and the impact on financial flows in the economy, with negative effects on budget execution and economic growth next year. Romania's economic recovery continues to be based on the absorption of European funds and on a predictable and honest partnership with the business environment. The responsible budgetary behavior of the Government in the last 6 months confirms this direction, allowing the mobilization of important resources for public investments, projects financed from European funds, local development," said the Minister of Finance, Alexandru Nazare, quoted in the press release.An essential element in creating this fiscal space is the renegotiation of the PNRR. In July 2025, the Ministry of Finance joined the process of revising the Plan, obtaining the support of the European Commission and DG ECFIN to move the financing of major road infrastructure projects from the loan component to the grant component. The materialization of these changes, together with the legal framework established by GEO no. 72/2025, as well as this year's budget adjustments, generated an additional fiscal space of approximately 5.5 billion lei (0.3% of GDP)."In addition, the Romanian Government obtained the agreement of the European Commission to move some projects in the field of health and transport infrastructure, with no prospect of completion until August 2026, from the PNRR to the 2021-2027 Cohesion Policy. These relocations allow the recording of expenses already incurred on revenues from European funds, reducing the pressure on the budget deficit and supporting the efficient absorption of EU funds. In addition, the measures adopted between July and September regarding the limitation of personnel expenses and expenses for goods and services, including the reduction of some bonuses and the capping of expenses that could be postponed, contributed to additional savings, currently used to finance public investments," explains the Ministry of Finance.Through redistributions already operated by the Ministry of Finance, in the last week the following were ensured: over 600 million RON for the Ministry of Transport - co-financing and European funds; over 750 million RON for the Ministry of Agriculture - subsidies and investments on European funds; over 30 million lei for co-financing regional development projects of local public authorities."Ensuring these amounts for co-financing, VAT related to investments implies the possibility of making payments to the beneficiaries of projects financed by European funds, contributing to attracting significant amounts from European funds. All these allocations and redistributions of funds are made within the budget programming approved by the last budget amendment and do not generate an increase in the budget deficit, the Government maintaining the deficit target assumed for 2025, of 8.4% of GDP," add the Ministry of Finance representatives.