Finance Minister Alexandru Nazare has said that Romania's second-quarter budget deficit of 9.2% of GDP should not be confused with the annual deficit, arguing that the figure is provisional and reflects the concentration of investment and payments linked to the National Recovery and Resilience Plan (PNRR) ahead of the 31 August deadline. He described the confusion surrounding the number as the kind of misreading that could needlessly fuel alarm.
According to Nazare, the quarterly deficit captures a period in which Romania pushed a large share of its PNRR-related payments into the first half of the year. Because those outlays are bunched together, the quarterly balance looks considerably weaker than the full-year trajectory is likely to be. The minister stressed that the country must still meet its fiscal commitments over the course of the year, and that the quarterly reading should be interpreted in that wider context rather than in isolation. The deadline of 31 August is the reference point around which the timing of these payments has been organised, which is why the data for the period appears uneven when viewed on its own.
The remarks come as attention in Bucharest turns to the scope for spending decisions later in the year. In a separate interview with Digi24, held on a Sunday, Nazare was asked whether there would be money to index pensions at the beginning of 2027. He said he would like that to happen, but argued that any adjustment must be prudent and sustainable in order to avoid budgetary imbalances. The question of indexation is closely tied to the deficit debate, since any increase in regular state outlays has to fit within the fiscal path the government is trying to maintain.
Asked whether an increase could exceed 5%, the Finance Minister said the decision would be taken only after the relevant financial data had been analysed. He did not put a figure on the potential adjustment, leaving the calculation open until the budgetary picture for the coming period becomes clearer. That position reflects the broader logic of his comments on the quarterly deficit: the government wants to avoid a judgment based on a single data point, whether the figure concerns the deficit or the cost of pensions.
Taken together, the two sets of remarks show a government seeking to reassure markets and the public that the sharp quarterly figure reflects timing rather than a loosening of fiscal discipline, while keeping the door open to future social spending. The deficit data and the pension question both point to the same constraint: the need to balance recovery-plan obligations, short-term cash flows and longer-term budget sustainability. How that balance is struck in the months ahead will determine whether the quarterly number remains a temporary peak or becomes a signal of wider pressure on public finances.