The first two months of 2025 show a 5% reduction in operating expenditures at the state budget level and almost 4% at the local authorities level, Finance Minister Tanczos Barna said on Wednesday.
"The first results of state spending cuts are already visible. We are spending less than in the same period last year and revenues are increasing. The first two months of 2025 show a reduction in operating expenditures by 5% at the state budget level and by almost 4% at the local government level. With the exception of health expenditures, state institutions have spent 380 million RON less on goods and services compared to the first two months of 2024," the minister wrote on his Facebook page.
At the same time, he emphasized that VAT collections have increased and reached over 25 billion RON in the first two months of the year. Tanczos Barna, however, maintains that correcting the budget deficit is a long-term process.
"We must remain firm in our commitment to keeping within the 7% deficit and stimulate economic growth through investment. Curbing the pace of spending and improving public services remain absolute priorities, for which we need a sustained effort from all state institutions," said the head of Finance.
The execution of the consolidated general budget in the first two months of 2025 ended with a deficit of 30.24 billion RON, or 1.58% of GDP, compared to a deficit of 28.99 billion RON, or 1.64% of GDP for the first two months of 2024, according to Finance Ministry data released on Wednesday. In January, the budget deficit was 0.58% of GDP.
The budget for the current year is built on an economic growth of 2.5% and a budget deficit of 7% of GDP. In 2024, the budget deficit climbed to 8.65% of GDP from 5.61% of GDP in 2023.
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