The deficit of Romania's aggregate budget decreased by RON 24.17 billion in the first nine months of 2026, to RON 78.3 billion, or 3.81% of GDP, as against RON 102.47 billion (5.31% of GDP) in the same period last year, according to data on budget implementation published on Monday by the Ministry of Finance.

'The results of budget implementation must translate into a lasting change in the way we manage public finances. Responsibility does not only mean correcting imbalances, but also avoiding the build-up of new pressures on the budget. We need discipline in public finance management, well-defined priorities and decisions that take into account the long-term effects. At a time when budgetary capacity remains limited, every progress must be consolidated and continued,' Finance Minister Alexandru Nazare is quoted as saying in a press statement from the ministry.

According to the Ministry of Finance, the budget deficit decreased by more than 23% in nominal terms and by 1.5% as a share of GDP, a development that reflects the continuation of the fiscal and budgetary consolidation process.

Receipts increased by 11.9% in the first nine months of the year, at a higher rate than that recorded by outlays, which advanced 5.5%.

At the same time, staff expenses decreased by RON 4.43 billion while public investments increased by over RON 25 billion to RON 107.77 billion.

'The results show that the narrowing in the budget deficit and the support of investments can advance simultaneously, but they do not eliminate the structural imbalances of the Romanian economy and the pressures on public finances, especially in the perspective of the last quarter of the year,' according to the report of the Ministry of Finance.

Total receipts amounted to RON 522.69 billion in the first nine months of 2026, up 11.9% (year-on-year). As a share of GDP, they advanced 1.23% supported both by tax revenues - especially VAT, and by European funds.

Receipts from payroll and income tax totalled RON 47.27 billion, up 7.8% (year-on-year), on a surge in dividend tax revenues (15.7%), on account of distributions concentrated in December 2025, in the context of legislative changes on their taxation. A significant development was also recorded in the case of receipts related to the Single Declaration (18.5%). The increase in receipts from payroll tax (+5.6%) - above the dynamics of the wage fund in the economy (3.2%), was influenced by the base effect generated by the repeal on January 1, 2025, of the tax incentives granted to employees in the construction, agricultural, food industry and computer software creation.

Insurance contributions registered RON 165.40 billion, up 6.8% (year-on-year), above the dynamics of the pay fund in the economy. The development in these receipts reflects the expansion of the tax base regulated by Law 141/2025, as well as the receipts related to the Single Declaration.

Corporate income tax revenues amounted to RON 30.13 billion, up 8.7% (year-on-year), on rising corporate income tax revenues from business operators (11.2%, year-on-year).

Net VAT receipts amounted to RON 118.27 billion, up 24.8% (year-on-year). The dynamics were influenced by the advance of gross VAT receipts (21.4% year-on-year), amid changes in VAT rates, provided for by Law 141/2025, at the same time as the increase in VAT refunds (+8.2%), compared to the level refunded in the same period last year (RON 26.71 billion in January - September 2026, as against RON 24.69 billion in January-September 2025).

Excise duty revenues amounted to RON 36.55 billion, up 2.4% (year-on-year), on an advance in excise revenues from energy products (+6.6% year-on-year). The monthly development in excise duty revenues generally presents a higher volatility, determined by the policy of business operators of fiscal warehousing of excise products.

Non-tax revenues amounted to RON 38.32 billion, down 6.8%, partially influenced by additional receipts from the similar period of 2025 - recovered state aid
revenues of RON 1.6 billion (Law 9/2025).

The amounts reimbursed by the European Union on account of payments made and donations totalled RON 48.95 billion, up 39.8% (year-on-year).

On the other hand, total outlays, amounting to RON 601 billion, increased in nominal terms by 5.5% from the same period of the previous year. Stated as a percentage of the Gross Domestic Product, outlays in the first nine months of 2026 decreased by 0.3% from the same period of 2025, from 29.5% of GDP to 29.2% of GDP.

Staff expenses amounted to RON 122.25 billion, down RON 4.43 billion from the same period of the previous year, amid reductions in some increases for some categories of public sector employees, as well as the measures to cap wage spending in 2025-2026. As a share of GDP, staff spending makes up 5.9% of GDP, 0.62% lower than in the same period of the previous year.

Outlays on goods and services amounted to RON 77.70 billion, up 9.4% from the same period of the previous year, an increase driven by higher payments in the healthcare sector.

Interest outlays amounted to RON 50.63 billion, RON 10.69 billion more than in the same period of the previous year. As a share of GDP, interest expenses makes up 2.5% of GDP.

Social security outlays amounted to RON 187.93 billion, almost the same as in the same period of the previous year, taking into account the measures taken by Law 141/2025 on some fiscal-budgetary measures. Social security spending was also influenced by the payments incurred from the state budget for subsidised bills related to electricity and natural gas consumption for the seven months of 2026.

Expenditures on subsidies amounted to RON 9.53 billion, with this amount mainly representing subsidies for passenger transport, support for agricultural producers, as well as for the compensation scheme for electricity and natural gas usage of non-household consumers (RON 242.48 million).

Other outlays amounted to RON 10.29 billion, down RON 2.50 billion from the same period of the previous year, taking into account the measures taken by Law 141/2025 on some fiscal-budgetary measures. Those outlays mainly include scholarships for pupils and students, support for religious denominations, other civil benefits and amounts related to payment titles issued by the National Authority for Property Restitution.

Spending on projects financed from non-repayable external funds amounted to RON 60.98 billion and include projects financed from non-repayable external funds related to the 2014-2020 financial framework and the 2021-2027 framework, including subsidies from the European Union related to agriculture, from the modernisation fund, as well as projects financed from the amounts representing non-repayable financial assistance related to the National Recovery and Resilience Plan (PNRR).

Investment spending, which include capital expenditures, as well as those related to development programmes financed from internal and external sources, increased by RON 25.154 billion compared with the same period last year, from RON 82.61 billion to RON 107.77 billion. Of this amount, 65.6% represents the value of payments for projects financed from non-repayable external funds related to the 2021-2027 framework, financed from the amounts representing non-repayable financial assistance related to the PNRR, as well as those financed from the amounts related to the loan component of the PNRR. By the end of September, payments worth RON 6.337 billion were made, representing expenses related to the SAFE plan.

Also, the value of payments for projects financed from non-repayable external funds related to the 2021-2027 framework, financed from the amounts representing non-repayable financial assistance related to the PNRR, as well as those financed from the amounts related to the loan component of the PNRR for the first nine months is by RON 23.75 billion, or 48.8%, higher than in the same period of the previous year, settling investments financed from national funds, where there is a decrease due to the exceptional nature of the payments made at the beginning of 2025, when outstanding payments related to national investment programmes were paid, the state's contribution to the share capital of Carpatica Feroviar Romania - S.A., as well as other payments in the field of defence.

The budget deficit target set for 2026 is 6.2% of GDP.

At the same time, the credit rating agencies have their own estimates regarding the budget deficit on which Romania will end the current year. Fitch Ratings estimates a budget deficit of 5.9% of GDP, below the target of 6.2% set by the government, S&P forecasts a general fiscal government deficit of 6.25% of GDP and Moody's projects the deficit this year at 5.8% of GDP. AGERPRES (RO - editing by: George Banciulea; EN - writing by: Corneliu-Aurelian Colceriu)