Romania's parliament is set to debate and vote on the 2026 state budget this week, a decision Finance Minister Alexandru Nazare said will determine the country's economic direction at a time of heightened global uncertainty.

Writing on Facebook on Monday, Nazare said lawmakers are not only voting on a budget but also on 'a vote of responsibility for Romania,' warning that the country cannot afford economic experiments or unfunded promises. He pointed to the challenging international environment, including instability in the Middle East and volatility in energy and financial markets, which could lead to higher inflation, slower growth and additional pressure on public finance.

The minister stressed that Romania still carries the legacy of the largest budget deficits in the European Union in recent years, with each policy decision affecting borrowing costs, financial market credibility and overall economic stability. He also mentioned that Romania is in the final stages of its accession process to the OECD, adding that any fiscal slippage could undermine the country's credibility with international partners.

Nazare described the 2026 budget as 'not perfect but realistic,' saying it maintains key investments while keeping the deficit under control. He argued that fiscal discipline and predictability are essential during periods of uncertainty, warning that ignoring budgetary discipline can lead to uncontrolled deficits, rising borrowing costs and harsh economic corrections.

The draft budget will be examined by parliamentary committees starting Monday, with the final vote expected on Thursday.

The government has based the budget on an economic growth forecast of 1% and a gross domestic product of 2,045 billion lei. The cash budget deficit is estimated at 6.2% of GDP, with revenues projected at 736.5 billion lei, or 36% of GDP, and expenditures at 864.3 billion lei, equivalent to 42.3% of GDP.

Fiscal revenues are expected to rise to 17.5% of GDP in 2026, while social security contributions are projected to reach 11.1% of GDP. Interest payments on public debt are also set to increase to 60.8 billion lei due to borrowing accumulated in previous years.

Funding allocated for local community development will exceed 86.4 billion lei in 2026, the highest level so far, according to the Finance Ministry. The budget also introduces a new fund for the Bucharest General Council to support public services, infrastructure co-financing and local development programmes.

Budget allocations for the transport and labour ministries are set to decline compared with the previous year, while the foreign affairs, development and health ministries will see lower budget credits but higher commitment appropriations. Most other ministries are expected to receive higher allocations compared with the preliminary execution of the previous year.

Public sector bonuses, allowances and premiums will remain at the December 2025 level, while the pension reference point used to calculate state pensions will stay at 81 lei. AGERPRES (RO - writing by: Andreea Marinescu; EN - writing by: Adina Panaitescu)