Romania’s consolidated budget deficit rose to 4.04% of GDP after the first seven months of this year, from 3.68% at the end of June, and reached RON 76.44 billion (EUR 15 billion), according to data published Thursday, August 28, by the Ministry of Finance.
Total revenues amounted to RON 370.77 billion in the first seven months of 2025, registering an increase of 11.8% (y/y). Expressed as a share of GDP, total revenues increased by 0.74%.
According to the ministry, collections from income and salary tax totaled RON 35.31 billion, 21.3% above last year’s value, “determined by the significant advance of collections from dividend tax (+84.0%), due to dividends distributed in 2024, with the retention of the 8% tax rate.”
At the same time, positive dynamics were also recorded in salary tax collections (21.4%), above that of the wage bill in the economy (11.5%).
“The evolution of this category of revenues was determined by the elimination of fiscal facilities granted to employees in the construction, agriculture, food industry, and software development sectors,” the ministry report says.
With regard to insurance contributions, data show an increase of 10.8%, at seven months, up to RON 121.07 billion, below that of the wage bill in the economy.
According to the ministry, profit tax collections totaled RON 26.17 billion (+11.1% y/y), and net VAT collections totaled RON 69.99 billion, marking an increase of 5.7%.
Compared to the reference period, the evolution of these collections can be explained both by the advance of VAT refunds (+5.8%), compared to the level reimbursed in the same period of the previous year, as well as by a higher base effect.
Also, excise revenues amounted to RON 26.67 billion (+13.2%), non-fiscal revenues reached RON 34.71 billion (+8.9%), while the amounts reimbursed by the European Union for payments made and donations totaled RON 28.62 billion (+33.6%).
Expenditures of the consolidated general budget totaling RON 447.21 billion increased in nominal terms by 11.1% compared to the same period of the previous year. As a percentage of Gross Domestic Product, expenditures in 2025 recorded an increase of 0.7% compared to the same period of 2024.
Personnel expenditures amounted to RON 99.72 billion (EUR 20 billion), up 7.9% compared to the first seven months of the previous year, representing 5.3% of GDP, with a 0.1% year-on-year increase.
Expenditures on goods and services were RON 53.59 billion (+0.5%), interest expenditures were RON 31.71 billion (+RON 9.83 billion), social assistance expenditures were RON 147.54 billion (+14.7%), and subsidy expenditures were RON 7.66 billion, mainly for passenger transport subsidies and support for agricultural producers, as well as for the compensation scheme for electricity and natural gas consumption of non-household consumers.
In this context, a mission of the International Monetary Fund, led by Joong Shik Kang, will carry out a visit to Bucharest between September 3-12 to analyze the recent developments of the Romanian economy.
“The Fund team will analyze recent economic developments and policies. It will have meetings with officials from the Ministry of Finance, the National Bank of Romania, and other government agencies, as well as with representatives of the private sector and non-governmental organizations,” according to a press release.
The consultations constitute a monitoring exercise that is mandatory for all member states.
Romania’s general government budget deficit reached RON 153 billion (over EUR 30 billion) in 2024, nearly 70% more compared to 2023, according to data published by the Finance Ministry. The deficit-to-GDP ratio reached 8.65% based on the estimated 2024 GDP (RON 1,765 billion), up from 5.61% in 2023 and compared to an initial 5% target.
(Photo source: Andrii Yalanskyi | Dreamstime.com)
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