Increasing taxation cannot be a solution for the future, as long as public spending is not reduced, consider representatives of the IMM [SME] Romania employers' confederation, referring to the evolution of income and expenditure in the first six months.
According to information provided by the Ministry of Finance, the execution of the general consolidated budget in the first six months of 2025 ended with a deficit of 69.8 billion lei, or 3.68% of GDP, compared to the deficit of 63.67 billion lei, or 3.62% of GDP for the first six months of 2024.
"We note that the deficit of the general consolidated budget increased in one month by 5.57 billion lei, approximately 1 billion euros, from 64.23 billion lei, on May 31, 2025, to 69.80 billion lei, on June 30, 2025. Total revenues collected in 6 months stood at 310.52 billion lei, registering an increase of 54.52 billion lei in one month (almost 11 billion euros) compared to the first 5 months of the year 2025, when they were worth 256 billion lei. The consolidated general budget expenditures in the first 6 months were 380.32 billion lei, registering an increase of 12.1% compared to the same period of the previous year. (...) An increase in expenditures by 60.09 billion lei in one month is noted, from 320.23 billion lei in the first 5 months, to 380.32 billion lei on June 30, 2025. From the increase in expenditures recorded in one month, of 60.09 billion lei, it is observed that 14.39 billion lei represents personnel expenses, the largest increase in total expenses (from 71.07 billion lei in the first 5 months, to 85.46 billion lei on June 30, 2025)", the representatives of the employers' confederation say.
In this context, IMM Romania believes that there is a need to reduce public spending, especially personnel spending.
"Although there is a constant increase in state budget revenues, each month, public spending increases at a higher rate. The lack of administrative reforms cannot be compensated for only by increasing taxation for the private sector. It is necessary to reduce public spending, especially personnel spending, which increases each month above the level of revenues. The increasing pressure of increased taxes on entrepreneurs and the population will determine a reduction in consumption and implicitly a decrease in budget revenues. Increasing taxation cannot be a solution for the future, as long as public spending is not reduced", IMM Romania representatives say.
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