Siegfried Mureșan outlines budget overhaul and tax reforms in new governing program

In the governing program presented to Parliament, designated prime minister Siegfried Mureșan commits to correcting the state budget within a month of the government's investiture and to issuing the subsequent year’s budget before the close of the year. The plan includes a conditional reduction of the value-added tax from 21% to 19% and the removal of the minimum turnover tax, while explicitly ruling out any new taxes.

Deficit reduction is to be achieved through tighter spending, improved tax collection and the substitution of European Union funds for borrowing. Savings from the state reform will be divided equally between cutting labor-related taxes and further deficit trimming, with pension and allowance indexation scheduled for the following year. The program also proposes conditioning social benefits on employment or training participation and outlines 28 chapters covering a wide range of reforms across administration, economy, energy, justice and digitalisation.