The budget deficit increased by over 6 billion lei in the first half of the year, to 3.68% of GDP

The execution of the general consolidated budget in the first six months of 2025 ended with a deficit of 69.80 billion lei, respectively 3.68% of GDP compared to the deficit of 63.67 billion lei, respectively 3.62% of GDP for the six months of 2024, according to data published Monday by the Ministry of Finance.

The budget deficit increased by over 6 billion lei in the first half of the year, to 3.68% of GDP

The total revenues totaled 310.52 billion lei in the first six months of 2025, registering an increase of 12.7% (year/year), supported by both the current income – mainly the tax and income tax and insurance contributions – as well as the evolution of revenues from European funds. Expressed as a share in GDP the total revenues increased by 0.74 percentage points (+0.5 pp in the case of current income – especially tax and income tax and insurance contributions and +0.24 pp to European funds).

The charges of salary tax increased by 21.8%

The collections from the tax on wages and income totaled 30.34 billion lei, registering an increase of 21.8%(year/year), determined by the significant advance of the charges from the dividend tax (+84.8%), on the account of the dividends distributed in 2024, with the withholding of the tax rate of 8%. At the same time, a positive dynamic was also recorded in the case of charges on the tax on wages (22.0%) – over the dynamics of the salary fund in the economy (11.8%), the evolution of this category of revenues being influenced by the elimination of the fiscal facilities granted to the employees from the construction sector, agricultural, the food industry and the activities for the computer activities.

The insurance contributions registered 103.46 billion lei, recording an increase of 11.6% (year/year), slightly below that of the salary fund in the economy. The evolution of these receipts was also influenced by an effective transfer to the second pillar of pensions than the one made in the first six months of last year (10.9 billion lei in Ian-Iun 2025, compared to 8.4 billion lei in Ian-Iun 2024).

The collections from the profit tax totaled 17.23 billion lei, recording an increase of 10.9% (year/year), supported by the advance of the income from the profit tax from the economic agents.

The net VAT receipts amounted to 59.27 billion lei, marking an increase of 3.8% (year/year). The evolution of these receipts can be explained both by the advance of the VAT refunds (+9.7%), compared to the level reimbursed in the same period last year (16.41 billion lei in Ian-Iun 2025, compared with 14.96 billion lei in Ian-Iun 2024), as well as a high basic effect and a more temperate dynamic. At the same time, the more accelerated revenues in June can be attributed to a favorable basic effect, generated by the low level of the tax base in June 2024.

The income income amounts to 21.96 billion lei, recording an increase of 11.9%(year/year), under the conditions of positive evolutions in excise duties for energy products (+13.6%) and excise duties for tobacco products (11.6%). The monthly evolution of excise receipts generally presents a higher volatility, determined by the policy of the economic operators for fiscal warehouses of excisable products.

Nephiscal revenues totaled 28.68 billion lei, up 7.7%, given that the receipts related to March include 1.6 billion lei representing revenues from state aids recovered from the Romanian – SA Carpathian Society

The amounts reimbursed by the European Union in the account of payments made and donations totaled 25.07 billion lei, up 30.9% (year/year).

Expenses 12.1% higher than in the first semester of 2024

The expenses of the general consolidated budget in the amount of 380.32 billion lei increased in nominal terms by 12.1% compared to the same period of the previous year. Expressed as a percentage of the gross domestic product, the expenses for 2025 registered an increase of 0.8 percentage points compared to the same period of 2024, from 19.3% of GDP to 20.1% of GDP.

The personnel expenses totaled 85.46 billion lei, increasing by 10.1% compared to the same period of the previous year. Expressed as a weight in GDP, personnel expenses represent a level of 4.5% of GDP, with 0.1 percentage points higher than the same period of the previous year.

The expenses with goods and services were 45.51 billion lei, increasing by 1.0% compared to the same period of the previous year. An increase is reflected in the budget of the unique national health insurance fund of 2.6% for the settlement of medicines with and without personal contribution and medicines used in national health programs.

The interest expenses were 25.23 billion lei, with 7.62 billion lei higher than the same period of the previous year.

Increase by 15.3% for social assistance expenses

The expenses with social assistance were 126.57 billion lei increasing by 15.3% compared to the same period of the previous year. The evolution of expenses with social assistance was mainly influenced by the implementation of measures to recalculate pensions in the public system starting from September 1, 2024, in accordance with the provisions of Law no. 360/2023 of November 29, 2023 regarding the public pension 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 6 months of 2025, were in the amount of 1.71 billion lei.

The expenses with the subsidies were 6.59 billion lei, mainly, this amount represents subsidies for passenger transport and the support of agricultural producers, as well as for the compensation scheme for the consumption of electricity and natural gas of non -home consumers (581.21 million lei).

Other expenses were 9.01 billion lei, representing mainly, scholarships for students and students, supporting cults, other civil damages and the amounts related to the payment titles issued by the National Authority for the Restitution of Properties.

The expenses regarding the projects financed from non -reimbursable external funds (including subsidies from the European Union related to agriculture) were 29.91 billion lei, up 22.19% compared to the same period of 2024.

Investment expenses, which include capital expenses, as well as those related to development programs financed from internal and external sources, were worth 50.44 billion lei, 9.03% higher than the same period of the previous year, when they were worth 46.27 billion.