Romania's budget deficit narrows as revenues rise and EU funds boost investments

According to Finance Minister Alexandru Nazare, Romania's budget deficit decreased by 1.5 percentage points of GDP during the first three quarters of 2026, confirming the impact of recent consolidation policies. Revenue collections rose to 522.69 billion lei, driven by better tax collection and fiscal changes, while expenditures grew modestly at 5.5%. Public investment hit 107.77 billion lei, largely funded by EU resources that cover over 70% of the spending.

EU-related income grew by 39.8% and disbursements for projects under the PNRR and other programs rose by 48.8%, with 13.27 billion euros already received and another 6.43 billion euros pending approval. Nazare cautioned that the budget remains vulnerable, especially as interest payments on debt reached 50.63 billion lei, up 10.69 billion lei year-on-year, and stressed that future spending must be matched by reliable financing.