Romania's Budget Overhaul: Approvals and Challenges

Romania's government aims to reduce the budget deficit to 6.5% of GDP by 2026 through tax hikes and spending cuts. Centrist President Nicusor Dan stressed the importance of further reforms to reach a target of 6%. The 2025 deficit is projected at 8.4% of GDP.

Romania's government has implemented a series of tax hikes and spending cuts, aiming to reduce the budget deficit to approximately 6.5% of economic output by 2026, according to centrist President Nicusor Dan.

Dan emphasized that further reforms are crucial to inch closer to the government's 6% target.

The 2025 budget deficit is currently projected to stand at 8.4% of GDP, underscoring the need for continued fiscal adjustments.

(With inputs from agencies.)