Budget deficit
How much the state spends above what it collects in a year; the gap is covered by borrowing.
What is the budget deficit?
The budget deficit is the gap between what the state spends in a year and what it collects in taxes and contributions. When spending is higher, the state borrows to cover the difference.
It is usually measured as a share of gross domestic product (GDP), the value of everything the economy produces in a year. According to Eurostat, Romania's deficit was 4.4% of GDP in 2019, 9.3% in pandemic 2020, again 9.3% in 2024 and 7.9% in 2025. In lei, the 2024 deficit was about 163 billion.
EU rules require deficits to stay below 3% of GDP. Romania is under the excessive deficit procedure, and in 2025 the EU Council asked it to take measures to cut the deficit.
A deficit is not bad in itself: states borrow in crises or to invest. The trouble comes when it stays large year after year outside a crisis. Every year of deficit adds to public debt, and the interest on that debt is paid out of later budgets.
A deficit of 7.9% of GDP means that for every 100 lei the economy produced in a year, the state spent almost 8 lei more than it collected.
How big was Romania's budget deficit in 2025?
7.9% of GDP, about 151 billion lei, according to Eurostat. In 2024 it was 9.3%, the same as in pandemic 2020.
What is the EU deficit limit?
3% of GDP is the reference value. Exceeding it can lead, after assessment by the Commission and Council, to the excessive deficit procedure, which requires a plan to cut the deficit; the procedure can also start on the debt criterion. Romania has been under it since 2020.
Related terms
Sources
- Eurostat, government deficit and debt (gov_10dd_edpt1, April 2026) and quarterly debt (gov_10q_ggdebt) · ec.europa.eu
- EU Council, excessive deficit procedure: timeline · www.consilium.europa.eu
Checked on 27 September 2026. Rules and figures can change.
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