The Q1 results confirm the fiscal consolidation commitment, achieving a reduction in the deficit while maintaining a high level of public investment, supported primarily by European funds, according to the Ministry of Finance.
Total revenues reached €31.7 billion in the first quarter of 2026, marking a 12.3% increase compared to the same period in 2025. Net VAT collections reached €6.7 billion, up 17.7%, driven by VAT rate changes under Law 141/2025. VAT refunds increased to €2.1 billion from €1.7 billion in Q1 2025. Income and salary taxes generated €3.6 billion, a 19% increase, supported by a 53% rise in dividend taxes and the elimination of tax facilities in construction, agriculture, food industry and IT sectors.
Total expenditures amounted to €35.9 billion, recording a 2.8% nominal decrease compared to the same period last year. As a share of GDP, expenditures fell from 9.7% to 8.8%. Personnel expenses decreased by €256 million to €8.2 billion due to limits on bonuses and salary expenditures. Investment expenditures, including capital expenditures and development programmes, totalled €4.3 billion, with 74.92% representing payments for projects financed from EU funds and the National Recovery and Resilience Plan (PNRR).
Social assistance expenditures totalled €12.7 billion, down 0.2% compared to the same period last year, taking into account measures under Law 141/2025. Interest expenses reached €2.7 billion, maintaining their share of 0.7% of GDP.
