Romanian PM's advisor assures first budgetary measures package secures 6% of GDP deficit in 2026

The first package of budgetary measures legislated in July will have an impact of 3% of GDP on the next year's general government's budget, bringing it down to 6% of GDP, prime minister's adviser Ionut Dumitru, Raiffeisen Bank chief economist and former Fiscal Council head, told Digi24. His statements come in the context of the government seeking to draft the 2025 budget revision this week, in agreement with the EC, whose representatives prime minister Ilie Bolojan is meeting in Brussels on September 22.

Romania's 7-year fiscal consolidation plan envisages a 7% of GDP public deficit in 2025, followed by 6.4% of GDP in 2026. The trajectory, defined in ESA terms, starts, however, from an estimate of 7.9% of GDP gap in 2024, while semi-final data show 9.3% of GDP gap (1.4 percentage points wider).