Bucharest, February 1, 2025 – RBJ – The Government adopted on Saturday, February 1, the draft budget for 2025 and sent it to Parliament where it will be debated and approved in an emergency procedure next week.
The budget for 2025 provides for a deficit of 7.04% and is calculated based on an estimated inflation of 4.4%. The state budget is also based on an economic growth of 2.5%, which means an estimated value of the Gross Domestic Product of 1,912 billion lei.
The Prime Minister of Romania, Marcel Ciolacu, stated that the state budget for 2025 does not provide for changes in taxes and duties, but allocates significant amounts for investments and development. In parallel, state spending is being reduced by 0.5% of GDP, the prime minister also said.
“Investments reach a new record – 150 billion lei, an increase of 30 billion compared to last year”, declared Marcel Ciolacu at the start of the Government meeting on Saturday. It is a development budget, just like last year, in which investments reach a new record, namely 150 billion lei, an increase of 30 billion compared to last year,
20% of total spending in 2025 represents investments. This will be seen in the increase in GDP to 1913 billion lei. And by the middle of next year, we will reach a GDP of 2000 billion lei. That is 400 billion euros, double compared to 2018, it is a clear sign that Romania is entering another economic league.
“In 2025, net wage earnings will increase by 6.1%, above the inflation rate of 4.4%. “We insisted on providing financial support for low-income retirees,” the prime minister also declared.
Local investments are prioritized based on economic impact. We are allocating 11 billion to the Anghel Saligny and PNDL Programs, 8.2 billion to PNRR projects and 3.3 billion to those from European funds. In addition, we are significantly increasing this year the decentralization of public funding to local authorities.
The biggest stake in the 2025 budget is the maximum exploitation of available European funds. It is a historic allocation of 4.6% of GDP, that is, over 17.5 billion euros. These are the peak years of development using European money and I will put huge pressure on everyone to take this money.
The PM requested that the amount allocated to investments be greater than the deficit, because that is fair for Romanians. This means more completed highways, the construction of new hospitals and a more efficient education system.
