Niculescu Government targets a deficit below 3% of GDP by 2030 / Spending, tax evasion and revenue collection are priorities

The Niculescu Government aims to reduce the budget deficit from 9.3% of GDP in 2024 to below 3% in 2030 by limiting spending, combating tax evasion and improving revenue collection. The objective is set out in the governing program submitted to Parliament and represents the deadline for closing the excessive deficit procedure.

The government estimates a deficit of approximately 6% of GDP at the end of 2026 and 3.2% in 2029. Fiscal consolidation in 2027–2028 is expected to be based on reducing waste, evaluating public programs and reorganizing the central and local administrations.

The program provides for merging agencies with similar responsibilities, selectively filling vacant positions and centralizing public procurement. Personnel expenses are expected to fall from 9.3% of GDP in 2024 to 7.9% in 2031, while social assistance is to remain below a ceiling of 12.2% of GDP.

On the revenue side, the government is targeting a reduction in tax evasion, recovery of arrears and a narrowing of the VAT gap, estimated at around 30%. The executive promises faster refunds for compliant taxpayers and the elimination of the minimum turnover tax starting January 1, 2027.

The plan prioritizes European and strategic investments in infrastructure, energy and healthcare. The measures are also necessary to limit debt-servicing costs: interest payments reached 42.1 billion lei in the first eight months of 2026, while public debt rose to 60.4% of GDP.