The budget cannot simply be a sum of all financing needs; it must be drawn up responsibly, and we are aware that this country cannot develop without fiscal discipline or amid chaos in investment spending, Finance Minister Alexandru Nazare said on Tuesday at a specialist event.

'After several months of discussions, we managed to secure a reduction in the IMCA (Minimum Turnover Tax - editor's note) in 2026. Today, one year on, I can tell you that 2027 will be the first year without the IMCA, and we want, as far as possible, to scrap all these harmful taxes that discourage development and investment and have affected us considerably in recent years. Economic growth has also slowed since 2021, which is proof of this. We will only be able to do this if we keep spending under control. The budget cannot simply be a sum of all financing needs. It must be drawn up responsibly,' Nazare stressed.

He said he had discussed the 2027 projections and working assumptions in Brussels on Monday, with a view to drawing up a realistic budget.

'That is precisely what was on the agenda of yesterday's discussions in Brussels (Monday, 9 November 2026, ed. note). In addition to the Ecofin meeting, I also held talks with Commissioner Dombrovskis (Valdis Dombrovskis, European Commissioner for Economy and Productivity, Implementation and Simplification, ed. note) and Commissioner Hoekstra (Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth, ed. note). We discussed where things stand, preparations for the budget, the 2027 projections and the assumptions we are starting from, so that we can draw up a realistic budget that confirms Romania is on the right track, that we are serious and consistent, and that the deficit will continue to be reduced in line with the plan. We are doing this because we have taken this on board and are aware that this country cannot develop without fiscal discipline. It cannot develop amid chaos in investment spending, with all kinds of investments, some of which are worthwhile and some of which are not, some with a multiplier effect and others without,' the Finance Minister added.

According to the official, Romania needs to bring order to its spending and investment over a longer period and lay the foundations for healthy economic growth, which is essential for fiscal consolidation.

'We need to bring order to both spending and investment and lay the foundations for healthy economic growth, not just for one or two years, but for the years ahead as well. This will make it much easier to achieve fiscal consolidation by 2030. It is one thing to consolidate public finances when the economy is growing healthily and quite another when you are constantly in contraction,' the Finance Minister further said.

According to him, the forecast for the economy this year points to a relatively modest contraction, but there are very positive signals from the construction sector, meaning that the final outcome for GDP will be determined in the last three months of the year.

'The forecast contraction for this year is relatively modest, at 0.4%. Nevertheless, I want you to know that I am optimistic. I am waiting for the third-quarter data, and we are looking at the performance of agriculture and construction. There are very positive signals from construction, and the outcome for economic growth in 2026 will be determined by the results for the final quarter. In any case, we will maintain the same relationships we have built so far and continue to send credible signals, which will translate into lower interest rates. Lower interest rates and a smaller deficit mean more money in the market, more money for the economy and, ultimately, the oxygen needed for a recovery. Because we need a recovery,' the minister explained.

He added that the Ministry of Finance was preparing a simplification package aimed at reducing the number of tax returns, clarifying certain provisions and cutting red tape.

'You know very well that last year we discussed here, in dialogue with you, the measures we were considering for micro-enterprises, and following our discussions with you, a single flat tax rate of 1% was retained. This measure was lost among many others, but it did exist. What do we need to do next? We need simplification. We are preparing a simplification package through which we aim to reduce the number of tax returns, clarify certain provisions and cut red tape, making your lives easier. I believe this is extremely important, beyond the level of taxation. This is an effort that must be made not only by the Ministry of Finance but by the entire Government. If we approach it responsibly, following the Omnibus model, like the well-known Omnibus packages in Brussels, we will see very significant effects on the economy. A credible budget protects us from unfortunate experiments in which, halfway through the year or in the third quarter, we realise that we need funding and have to take money from one area and move it to another, and so on. (...) Romania would not have managed to maintain its rating, and we would not have managed to get to where we are today and effectively protect the entire Romanian economy, without tax compliance,' the official pointed out.

The Chamber of Tax Consultants (CCF) is organising the second edition of the Taxation and Technology Summit on Tuesday, on the sidelines of the GoTech World event. AGERPRES (RO - writing by: Daniel Badea; EN - writing by: Cristina Zaharia)