The latest data from the Ministry of Finance on taxation in Romania: The cash deficit was one percentage point below the level of 2024

The Ministry of Finance published, on Tuesday, the execution of the general consolidated budget for 2025, which indicates a cash deficit of 146.03 billion lei, equivalent to 7.65% of GDP, down by 1 percentage point compared to the deficit of 8.67% of GDP recorded in 2024. The cash deficit represents the difference between the actual receipts and payments of the state. There may be differences from the ESA deficit, calculated according to European rules, based on economic commitments, not actual payments, an indicator that evaluates a state's fiscal discipline.

The Ministry of Finance also did not present the figures on the ESA deficit.

According to the data provided by the Ministry of Finance, the reduction of the deficit was achieved simultaneously with the maintenance of a high level of public investments, which reached 7.2% of GDP, being financed in a majority proportion from non-reimbursable European funds.

Strongly growing budget revenues, supported by European funds and current revenues

The revenues of the general consolidated budget totaled 662.70 billion lei in 2025, increasing by 15.3% compared to the previous year. As a share of GDP, total revenues advanced by 2.05 percentage points.

The level of income in 2024 was influenced by exceptional receipts generated by the tax amnesty (6.3 billion lei). Excluding this temporary effect, the contribution of current income to the growth of the share in GDP is estimated at around 0.8 percentage points.

Higher taxes

The expenses of the consolidated general budget totaled 808.73 billion lei. According to the Ministry of Finance, there were influences of additional administrative measures to monitor and cap non-essential expenses.

Finance Minister Alexandru Nazare claims that a key element was the reversal of the investment financing structure, by increasing the weight of European funds at the expense of national ones, including by renegotiating the PNRR and moving some projects from the loan component to the grant component.

Salary and income tax receipts reached 58.82 billion lei, up 19.9% ​​compared to 2024, an evolution determined by the advance of the tax on dividends and the elimination of some sectoral tax facilities.

Insurance contributions totaled 208.03 billion lei (+9.8%), due to the elimination of some exceptions to the CASS payment and better payment compliance.

Net VAT generated 133.90 billion lei, up 10.7%, with a visible acceleration in the second part of the year, supported by digitization (e-Invoice) and changes in VAT rates.

Revenues from the profit tax were 41.01 billion lei (+14%), and those from excise duties totaled 48.32 billion lei (+4.3%).

What were the personnel expenses

The amounts received from the European Union were 75.9 billion lei, after the renegotiation of the PNRR and the transfer of some major projects from the loan component to the grant component.

Personnel expenses totaled 167.72 billion lei, decreasing as a share from 9.36% of GDP in 2024 to 8.78% of GDP in 2025, signaling a more efficient management of the budget apparatus.
Interest expenses reached 50.50 billion lei (2.64% of GDP), the increase being absorbed by the additional revenues collected.

Investment expenditures reached a record level of 138.20 billion lei, increasing by 15.7% compared to 2024. Of these, 78.55 billion lei (56.6%) were related to projects financed from external non-reimbursable funds and PNRR.

Total expenses for projects financed from European funds were 90.27 billion lei, including cohesion investments, PNRR and subsidies for the agricultural sector.