Moldova and Romania face fiscal adjustments and budget revisions

budget deficit fiscal consolidation Moldova economy Romania economy public spending

In Moldova, Prime Minister Vasile Tofan has announced that the 2027 state budget will focus on public savings and deficit reduction. To address a deficit exceeding 5% of GDP, the government is considering reducing expenditures for ministries and agencies, with some institutions potentially facing consolidation. Despite these fiscal pressures, Tofan noted growth in sectors such as industry, medical tourism, pharmaceuticals, and IT.

In Romania, interim Finance Minister Alexandru Nazare announced two planned budget rectifications for 2026 to cover urgent operational needs for the Ministry of Health, the Ministry of Internal Affairs, and ambulance services. Meanwhile, the proposed Minister of Transport, Ștefan-Ovidiu Popa, has indicated that the Ministry of Transport and Infrastructure requires approximately 7.2 billion lei in additional funding to complete the 2026 fiscal year.

Moody’s has signaled that the investment of the new government led by Luca Niculescu would be a positive development for Romania’s credit profile, though the agency warns of high implementation risks for fiscal consolidation. The agency estimates Romania's economy may contract by 0.5% in 2026, with average inflation reaching 8.2%.