Romania's government relaxes spending restrictions for local administrations

The Romanian government has amended its fiscal austerity rules to ease restrictions on spending by local authorities, Digi24 reported. The decision modifies Emergency Ordinance (OUG) 52/2025, which had previously frozen most local administration expenditures until the end of 2025.

Under the new provisions, municipalities and communes are again allowed to fund public events, including local festivals, holiday celebrations, and New Year's Eve festivities. The original ordinance had blocked such expenses, sparking complaints from local authorities that the measures impeded normal community functions.

Government officials stated that the amendments were intended to "eliminate operational obstacles" faced by local administrations. However, the revised rules provide a broader relaxation of restrictions than initially expected.

The government also introduced new exemptions for public health institutions, which will no longer be required to limit spending on goods and services, maintenance, consultancy, or research projects. Health units will also be exempt from the general spending cap applied to other public bodies. Additionally, no limits will apply to expenditures related to the payment and transmission of pension and social assistance rights.

Another key amendment concerns projects financed through national programmes or non-reimbursable external funds, including those under the National Recovery and Resilience Plan (PNRR). Such expenses, including consultancy and feasibility studies, are now exempt from the restrictions set by OUG 52.

Authorities and public institutions will therefore be able to continue financing technical documentation, authorizations, and applications for investment projects. The government argued that these adjustments aim to ensure the continuity of public investment and the efficient absorption of European funds while maintaining overall fiscal discipline.

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