Economist warns budget revision may force investment freeze and spending cuts

Adrian Negrescu said that the pending budget rectification will be a crucial trial for the incoming administration, given that revenue targets set earlier this year have not been met and interest outlays have exceeded forecasts. With a substantial portion of EU financing still awaiting disbursement, he warns the state may have to rely on fresh loans, pressure Brussels for funds, and suspend investment programmes. Negrescu criticises previous measures that cut gambling venues and halted the VAT increase on new homes, both of which weakened fiscal inflows.

He notes that one outlet fiscal strain could push the deficit higher in the year-end months as agencies tend to spend remaining allocations. Finally, he stresses that restoring creditor confidence will depend on the new government's ability to implement reforms and secure financing.