Romania will end the year with a budget deficit of 8.4%. Kelemen Hunor: “From January-February we will have a decrease in inflation”

The government has taken important steps to balance the budget and reduce the budget deficit, estimated at 8.4% at the end of this year, a level established in agreement with the European Commission, said the president of UDMR, Kelemen Hunor, on Monday evening. He emphasized, however, that the essential reforms have not yet been implemented, although he is optimistic about a possible drop in inflation starting from the first months of next year.

Kelemen Hunor also said how 2026 will be for Romanians. PHOTO: Inquam Photos/Simion Tataru

“From my point of view, we've taken some small steps in the right direction, to balance the budget, to reduce the budget deficit. But we haven't made reforms yet,” stated Kelemen Hunor at Digi24.

According to him, the only attempts at reform concerned the area of ​​special pensions of magistrates, and the CCR will decide on December 28.

The UDMR leader recalled that the reduction of the deficit was also achieved by reducing some expenses, including in Education, but also by increasing taxes.

“And the taxes were increased, VAT in the first place and excises on fuel, alcohol, cigarettes and other excised products. So (…) we reduced the budget deficit, we prioritized investments, which is good and we will end the year with 8.4%, the target set with the Commission. We could not do less, because it is almost impossible under the given conditions”. explained Kelemen Hunor.

He stated that the budgetary correction measures were taken only after the presidential elections in May. Under these conditions, the UDMR leader estimates that next year the budget deficit could decrease to approximately 6.5-6.6%.

Kelemen Hunor pointed out that pressure on the budget will remain high in 2026, mainly due to interest costs on loans taken out in previous years.

“We have next year, indeed, a problem, a problem in the sense that we have to pay the interest on those loans that were taken in the short term and with high interest in 2023 and especially in 2024. That means around 12 billion euros. About 3% or almost 3% of this deficit is there,” he explained.

On the other hand, the UDMR leader emphasized the importance of absorbing European funds, especially those from the National Recovery and Resilience Plan (PNRR), which could contribute to balancing public finances.

“Indeed, it is a very difficult period for every person. We must not deny that, because inflation was relatively high and remained relatively high until December. I think, however, that from January-February we will have a decrease in inflation and we must manage the budget very responsibly”. Kelemen Hunor also stated.