The government plans to finalize the state budget by the end of January

The government plans to finalize the state budget by the end of this month so that the new parliamentarians can debate and vote on it, most likely in an extraordinary session.

In drafting the budget, the executive is aiming for a deficit of no more than 7% of gross domestic product, as agreed with the European Commission, without other fiscal measures.

However, major spending cuts in the public sector and the reforms set out in the National Recovery and Resilience Plan are needed.

The government aims to reduce budget waste by 1% of GDP, or 19 billion lei, while at the same time increasing budget revenues by implementing the reforms in the National Recovery and Resilience Plan.

The measures include a freeze on public sector salaries and state child allowances.

The subsidy to political parties is also cut by 25% from last year's level.

There will be no more government hiring this year and some public institutions will be reorganized and merged.

The ordinance also stipulates that people working in construction, agriculture and IT will be subject to payroll tax.

It also increases the tax on dividends from 8% to 10% and introduces a new tax on special constructions.

This tax will not be levied for the next 90 days, during which time implementing rules will be drawn up. Pensions will also not increase this year, with the reference point remaining at 81 lei.

The government is also expected to adopt the 2025 state budget in the first sessions of this month, and the new parliamentarians will probably debate and vote on it in an extraordinary session at the end of January.

Translated by: Radu Matei