Romania budget deficit falls to 2.89% of GDP in first eight months of 2026

Romania's budget deficit decreased by approximately 31% during the first eight months of 2026, falling to 2.89% of GDP compared to 4.51% during the same period in 2025. According to the Ministry of Finance, the consolidated general budget deficit stood at 59.42 billion lei, which is 26.94 billion lei lower than the 86.36 billion lei recorded in the previous year.

Total revenues rose by 11.4% to 468.10 billion lei, driven largely by a 25.2% increase in VAT collections. Tax revenues specifically grew by 14.3%. In contrast, total expenditures increased by 4.2%, reaching 527.53 billion lei. Finance Minister Alexandru Nazare noted that these figures confirm the ongoing fiscal consolidation process, though he cautioned that budget pressures require continued prudence.

Separately, the CFA Romania Macroeconomic Confidence Indicator fell by 4.8 points in August to 39.5 points. Adrian Codirlașu, president of CFA Romania, attributed this decline to worsening economic expectations, including concerns over stagflation and the potential depreciation of the leu against the euro.