What the business environment in Romania says after the adoption of the budget. Cristian Erbașu's warning: “The price of bitumen has increased by 30%”
The adoption of the state budget, even if it came significantly behind the legal deadlines, was received with a dose of tempered optimism by the business environment. Cristian Erbașu, one of the most important entrepreneurs in the construction sector in Romania, told “Adevărul” that the signal sent to the economy is positive, but warns that big question marks remain related to execution and the stability of financing.
Cristian Erbasu. PHOTO: Inquam Photos / Mălina Norocea
On Friday, March 20, the parliamentarians adopted the state budget for 2026. It is built on economic growth estimated at 1%, a nominal GDP of 2,045.2 billion lei. The total revenues of the budget increase from 34.7% to 36% of GDP, against the background of fiscal consolidation measures but also expectations of improved collection. Of this total, 31.1% of GDP represents current revenues – tax revenues, contributions and other state revenues. Thus, the total revenues of the general consolidated budget are estimated at approximately 736.5 billion lei in 2026, while current revenues amount to 636.3 billion lei.
Interest expenses increase by approximately 10.3 billion lei compared to 2025, from 50.5 to 60.8 billion lei, reflecting the cost of financing accumulated deficits and the maintenance of high interest rates in financial markets.
The total volume of investments reaches 164 billion lei, almost 25.8 billion more than in 2025, raising their share to over 8% of GDP, compared to 7.2% in the previous year.
Cristian Erbașu: “It's still a good signal for the economy”
“Even if it's late, very late, it's still a good signal for the economy. There are a lot of fears, especially in the area of builders, generated by payment delays and the lack of clear budget allocations for ongoing projects. We hope that, from now on, these funds will reach local budgets as quickly as possible.”says Erbașu.
The builder also notes that the budget allocated to investments is substantial, at least on paper. The real question, in his opinion, is whether these amounts will actually be spent, given that a good part of the year has already passed.
“Another encouraging aspect, at least on a theoretical level, is the fact that a fairly large budget is provided for investments. However, it remains to be seen whether this budget will actually be spent, especially since a significant part of the year has already passed. There is a risk that the bureaucracy will lead to a decrease in the degree of execution, and the real question is how much of this budget will be put into action.” explains Erbașu.
Lack of cash flow, a structural problem
Beyond the budgetary perspective, Cristian Erbașu describes a difficult reality that the construction sector has faced in the last year: investments have continued, but without the guarantee that the financing will come on time. The consequences were felt especially at the level of small and medium-sized companies.
“It is a rather unpredictable period. Although investments are ongoing, they have not always had the necessary funds allocated. At the end of last year, important payments were made, but previous delays have affected the ability of companies to perform. The lack of cash flow makes it difficult to continue work, especially for smaller companies. In general, only large companies have been able to manage this situation, but the market is not only made up of large-scale projects, but also many small-scale works.” attract the attention of the businessman.
For the coming months, Erbașu hopes that the logic of adopting the budget will be followed by a real change in the way funding is managed. “I hope that in the remaining months of this year there will be more continuity and stability in funding, so that the projects can be carried out constantly”he adds.
The price of bitumen exploded. The effects will ripple throughout the economy
Another topic of concern for builders is the evolution of fuel and construction material prices, in the context of geopolitical tensions and the volatility of the energy market. Erbașu warns that if the authorities do not intervene, the price shock will quickly spread throughout the economy.
“Regarding the increase in fuel prices, the authorities have several tools at their disposal and we have seen that, in other states, measures have already been adopted to limit the increases. It is not clear, however, to what extent the Government is willing to intervene at this moment. What is certain is that, if the price of fuel continues to rise, the effects will spread throughout the economy.”says Erbașu.
The situation is already critical regarding an essential material for road infrastructure.
“In the construction sector, the situation is already critical in some ways. For example, the price of bitumen has increased in just a few weeks by about 30% or even more. Given that a large part of the investments in Romania are aimed at road infrastructure, this has a major impact.” warns the builder.
And the pressure doesn't just come from fuels.
“In addition to machinery fuel costs, rising construction material prices are becoming an increasingly important factor. At the moment, bitumen is one of the most problematic items from a cost perspective.”concludes Cristian Erbașu.
