According to the cited source, budget revenues will increase by RON 7.11 billion next year, RON 8.75 billion in 2026, RON 9.41 billion in 2027 and RON 9.95 billion in 2028, while budget expenditures will decrease by RON 126.26 billion in 2025.
Among the measures envisaged in the draft ordinance are the freezing, at the level of November 2024, of the salaries of employees in the budgetary system, bonuses, food allowance and child allowance, the non-granting of value tickets, except for daycare vouchers, the blocking of vacant posts, the rewarding with time off for overtime worked, maintaining the reference point, an essential element in the calculation of pensions, at the level of 81 lei and the value of the social reference indicator at the level in payment in November 2024, reducing the subsidy allocated to political parties by 25% compared to the level granted in 2024, or not updating the service pensions with the inflation rate.
At the same time, the draft proposes to increase the tax rate from 8% to 10% for dividends distributed as of January 1, 2025, reduce the ceiling of income realized by a Romanian legal entity from €500,000 to €250,000, including during the tax year, and from January 1, 2026 to €100,000, the elimination of the condition of realization of income from consulting and management, in the proportion of 80%, used for inclusion in the category of microenterprises, the elimination of tax facilities granted to individuals realizing income from salaries and assimilated to salaries, as a result of carrying out the activity of creating computer programs or from employers in the construction, agricultural and food industry sectors under the conditions set by the Tax Code, starting with the income for January 2025, etc.
As of April 2020, Romania has been in the excessive deficit procedure (EDP), as a result of exceeding, in 2019, the 3% budget deficit limit set in the Stability and Growth Pact (SGP). The EDP was initiated by a proposal of the European Commission (EC) in March 2020, before the activation of the general derogation clause at EU level.
"According to the European Commission's recommendation of June 2024, Romania should limit the increase in net primary expenditure to a rate consistent with the reduction of the general government deficit towards the Treaty reference value of below 3% of GDP and maintain government debt at a prudent level over the medium term. In this context, it is necessary to adopt measures to limit the increase in permanent expenditure to a level that would allow the Romanian government to comply with the conditionality assumed by the Romanian government, including as regards the budget deficit and to avoid creating the premises for a budgetary imbalance, with negative consequences on the Romanian fiscal and external performance", the draft's explanatory memorandum states.
