Finance Minister Alexandru Nazare presented the status of preparations for the 2027 budget on Thursday, during the Government meeting. Public institutions must submit by Friday, November 13, their proposals on spending limits for next year and estimates for the 2028–2030 period.
The budget will depend on how Romania closes 2026, for which the deficit target is 6.2% of GDP, as well as on the receipt of European funds from the NRRP. The Finance Ministry estimates that meeting the target includes receiving, by the end of the year, the funds related to payment requests 5 and 6, which are still under evaluation by the European Commission.
The amounts received, the impact on the deficit, payment obligations and available financing sources will be analyzed when drafting the 2027 budget. The authorities will also take into account public debt, which has exceeded the threshold of 60% of GDP, as well as the assessments by rating agencies scheduled for the first part of next year.
Several institutions have not yet submitted all the necessary data. The Ministry of Education and Research and the Ministry of Energy must complete information on programs financed from the state budget, while the General Secretariat of the Government, the Ministry of Education and the Romanian Academy have not finalized all proposals in the eBuget_NG system.
After the data is consolidated, the Finance Ministry will analyze funding needs and prepare the spending limits for 2027. The Government will subsequently approve these limits, and the Finance Ministry will send institutions the framework letter containing the rules and available amounts.
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Context: Nazare put pressure on the credibility of the 2027 budget and called for monitoring PNRR funds
Before presenting the status of preparations, Alexandru Nazare warned that Romania risks receiving a “red card” from rating agencies if the 2027 budget is not credible, and called for the deficit to be reduced by approximately one percentage point of GDP in each of the next three years. The minister also said that the adjustment should be made primarily by reducing spending, not by raising taxes, specifying that he does not want tax increases in 2027.
He also called for an up-to-date assessment of PNRR funds before the 2026 budget revision, after more than 300 million euros related to payment request no. 3 entered the state Treasury, so that ongoing projects can be aligned with the available resources.
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