Romania’s public budget shows signs of improvement in October, when deficit halved

Romania’s general government budget deficit halved y/y to RON 6.4 billion (EUR 1.25 billion) in October, when the tax revenues increased by 15.6% y/y – ten times the 1.5% y/y advance of current expenditures, according to data published by the Finance Ministry. Notably, the payroll narrowed by 4.0% y/y and the expenditures with goods and services by 7.6% y/y after both categories posted 6%-7% y/y advancements in January-September.

The public deficit edged down marginally (-0.5% y/y) to RON 108.9 billion (EUR 21.4 billion) in January-October, while the deficit to GDP ratio eased to 5.72% in the first ten months of this year, compared to 6.22% in the same period of 2024.