The first 3 months ended with a budget deficit of 44 billion lei or 2.28% of GDP. Barna: “The execution of the budget reflects the challenges of the internal and external economic context”

The execution of the general consolidated budget in the first three months of 2025 ended with a deficit of 43.66 billion lei, respectively 2.28% of GDP compared to the deficit of 35.88 billion lei, respectively 2.04% of GDP related to the three months of 2024, the minister of the finals transmitted on Friday.

The total revenues totaled 141.32 billion lei in the first three months of 2025, registering an increase of 6.9% (year/year), supported by the advance in the tax and income tax, by insurance and excise contributions.

On the other hand, the expenses were 184.98 billion lei increased in nominal terms by 10.1% compared to the same period of the previous year.

The personnel expenses totaled 42.13 billion lei, up 15.3% compared to the same period of the previous year. Expressed as a weight in GDP, personnel expenses represent a level of 2.2% of GDP, with 0.1 percentage points higher than the same period of the previous year.

The interest expenses were 12.50 billion lei, with 4.87 billion lei higher than the same period of the previous year.

Very high were the expenses with social assistance – 63.64 billion lei increasing by 12.1% compared to the same period of the previous year. The evolution of expenses with social assistance was mainly influenced by the recalculation of pensions in the public system. The expenses with social assistance were also influenced by the payments incurred from the state budget for the compensation of the invoices related to the consumption of electricity and natural gas, respectively for the 3 months of 2025, were in the amount of 825.64 million lei.

Romania has the largest tax deficit in the EU, although government officials say they will reduce this gap to 7% this year (from 9.2%). For now, the electoral cheeses prevent them from taking measures of tax increases (or at least to discuss their eventuality), although the financial markets become more nervous, seeing that Romania promises, but does not deliver results.

Romania will wait for the result of the elections to take measures to reduce the budget deficit. “Everyone is talking about it. The rating agencies are waiting for this,” says the chief of treasury.

“Everyone is aware of the need for additional measures, because the budget execution does not look so good to lead us to a 7%budget deficit,” Nanu said.

Romania will probably remain one of the most borrowed countries in Central and Eastern Europe, with a plan to raise 13 billion euros from external markets this year, after a record show of 18 billion euros in 2024.

“The state's expenses have increased, reflecting the salary and pensions increases granted last year, but we also have a decrease, at the level of expenses with goods and services from the state budget and that of the local authorities.

There are results and trends that need to be continued at a much more sustained pace. For this, we need, first of all, political stability, but also a common effort from all state institutions. The reduction of expenses and the classification within the limits set through the budget must be the number one priority in all state institutions, without deviations and compromises ”, said Tanczos Barna, Minister of Finance