Romania's 2026 budget planning may not be ready before January

Romania's prime minister Ilie Bolojan, in a press conference on November 17, announced that the next year's budget planning might not be approved in December but rather in January after having legislated the entire set of budgetary measures that should generate a predictable budgetary construction for 2026.

Bolojan made the comments while attending the General Assembly of the Association of Municipalities in Romania, as reported by Agerpres.

The Parliament, on November 18, should amend the law on fiscal measures, part of the second package of budgetary measures, in line with the objections expressed by the Constitutional Court (CCR). This would allow local administration to increase the taxes on property and better collect their revenues, he explained.

"We are in a situation where we should close this year with an 8.4% of GDP deficit, and what we have committed to for next year is to bring the deficit as close to 6% as possible. If I had to make an estimate, I could say 6%-6.5%," said Ilie Bolojan.

He explained that the interest paid on public debt, EUR 11 billion this year and EUR 12 billion (3% of GDP) in 2026, is a major constraint to bringing the public deficit down. However, proven fiscal discipline should reduce borrowing costs and thus create fiscal space, he also explained.

(Photo source: Gov.ro)