Romania achieves significant budget deficit reduction to 7.8% of GDP in 2025

Romania has made impressive strides in managing its finances, reducing its budget deficit to 7.8% of GDP in 2025. This notable decrease from 9.2% in 2024 marks the largest reduction among EU member states, with a drop of 1.4 percentage points.

The new deficit figure represents a favorable revision compared to the 7.9% previously communicated by Eurostat in April 2026. In addition, budget revenues have grown, increasing by 1.6 percentage points from 34.0% in 2024 to 35.6% in 2025, showcasing a positive trend in fiscal management.

While the reduction of the deficit is a commendable achievement, it is viewed as a necessary step toward ensuring Romania's financial stability rather than an end goal in itself. For context, Poland currently has a budget deficit of 7.2%, while Belgium and France report deficits of 5.2% and 5.1%, respectively.

Despite the progress in Romania, 11 EU member states still recorded deficits of at least 3% of GDP. Looking ahead, Moody's, Fitch, and S&P have projected deficits of 5.8%, 5.9%, and 6.25% for Romania in 2026, respectively. The target deficit for that year is set at 6.2% of GDP.

As of the end of the first quarter of 2026, the consolidated budget execution showed a deficit of 1.03% of the annual GDP. By the six-month mark, the deficit had grown to 2.0%, and by nine months, it reached 3.82%. These figures illustrate the ongoing efforts and challenges in maintaining fiscal discipline as Romania works toward its financial goals.