Romania operates second budget revision, keeps deficit target at 8.4% of GDP

Romania's Ministry of Finance published for debate the draft emergency ordinance (OUG) on the second budget rectification of this year on the evening of November 27. According to the document, the general government budget deficit will remain at 8.4% of GDP, Hotnews.ro reported.

Central government budget revenues for 2025 are revised downwards by RON 2.1 billion, while planned expenditures are cut by over RON 2.7 billion.

"The largest part of the rectification focuses on covering amounts in the health sector. We are basically covering medical services, medicines, sick leave of over RON 2 billion," minister of finance Alexandru Nazare explained in the press conference, where he also explained the budget execution for the first ten months of the year.

The minister also said that the rectification will allocate amounts for payments of arrears to the Ministry of Transport.

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. The government targets an 8.4% of GDP deficit for the entire year 2025, a moderate improvement from 8.65% in 2024.

(Photo source: Facebook/Alexandru Nazare)