Romanian Finance Ministry sets roadmap for 2025-2026 fiscal reforms - EXCLUSIVE
The Ministry of Finance of Romania has provided details on recent fiscal and budgetary changes following the government’s assumption of responsibility before Parliament on 7 July 2025 for the Law on Certain Fiscal and Budgetary Measures.
In an exclusive interview with CE Report, the ministry pointed out that one of the key provisions introduces a 10% health insurance contribution on pension income exceeding 3,000 lei per month, calculated after deducting this threshold from the total pension entitlement. Pensioners earning below 3,000 lei will remain exempt from these contributions and continue to be insured under the national health insurance system without payment.
"We specify that the Law on certain fiscal and budgetary measures has removed other categories of persons from the exemption to pay the health insurance contributions, and it regulates the withholding at source of health insurance contributions and other categories of persons, the withholding at source of contributions from the amount of allowances or, where applicable, the option to pay the health insurance contributions equal to 6 times the minimum gross basic salary in the country, in effect on 1 January of the year for which the contribution is due," the statement reads.
The ministry considers the main goal of eliminating tax breaks and exemptions is to create a fairer, more efficient, simpler and more transparent tax system that is better able to support the economy and improve services to taxpayers.
"The 2024-2028 Government Programme by the PSD-PNL-UDMR-Parliamentary Group of National Minorities in the Chamber of Deputies, adopted by Parliament Decision No. 25/23 June 2025, contains measures to increase excise duties with the aim of reducing the budget deficit, consolidating Romania's fiscal and budgetary position and avoiding sanctions that could result in the suspension of European funds allocated to Romania under the National Recovery and Resilience Programme," the finance authority said.
The government' body noted that excise duties are levied on products harmful to health, with the exception of fuels, in order to deter the consumption of such harmful products.
"At the same time, whereas fuel prices are reflected in the prices of all products and services on the market, we would like to point out that, in parallel with the increase in excise duties on fuels, a government decision is being considered on the introduction of a state aid scheme to compensate for the increase in excise duty on diesel used as motor fuel in goods transport," the Romanian government officials emphasized.
The ministry recalled that the draft law on certain fiscal and budgetary measures, which regulates certain fiscal and budgetary measures to strengthen Romania's long-term financial sustainability, was published on 3 July on the Ministry of Finance website, under the Transparency section.
"The comments and proposals submitted on the measures contained in the above-mentioned draft legislation were analysed by the Ministry of Finance and the measures that can be implemented were taken into account by reference to the need for prudent management of budgetary resources and the fulfilment of the commitments made in the Government Programme in the field of public finance containing the Government's objectives," the finance authority clarified.
At the same time, the ministry pointed out that the expected ex-ante impact of the VAT realignment measure is around 1.5 percentage points and will be felt in the second half of 2025 and the first half of 2026.
"With regard to the support provided to teachers as a result of the increase in the number of hours in the education sector, we recommend that you contact the Ministry of Education and Research, which is the competent authority in this area," the statement concluded.
Photo: Wikipedia
This interview was prepared by Abdul Karimkhanov
