Romania's deficit down over 40% in first five months, interim PM Bolojan warns populism could reverse fiscal gains
Interim Prime Minister Ilie Bolojan announced that Romania's budget deficit fell by more than 40% in the first five months of 2026, to 36 billion lei, from 64 billion lei a year earlier. He called it the first serious correction after years of excessive spending and warned that populism could undo the progress.
Deficit correction announced
Interim Prime Minister Ilie Bolojan took to Facebook on Saturday to highlight a sharp improvement in Romania's public finances. The budget execution for January through May 2026 shows the deficit shrank to 36 billion lei, down from 64 billion lei in the same period of 2025, a drop of more than 40%.
- 2025 (Jan-May)
- 64 billion lei
- 2026 (Jan-May)
- 36 billion lei
The reduction of over 28 billion lei is the first serious correction after years in which state expenditure grew far beyond what the economy produces, Bolojan wrote.
It is a clear sign that the state is beginning to spend closer to what it can afford.
He compared the fiscal adjustment to a medical treatment, noting that the initial phase can be painful before recovery.
Correcting the deficit is like treating a disease. To feel well and heal, the first stage of treatment can make you feel worse. It is the path to recovery.
Political stalemate backdrop
The statement comes against a deadlocked government formation. Bolojan has led an interim cabinet since his dismissal through a no-confidence motion by the PSD and AUR parties on 5 May. Talks remain stalled: the PSD has nominated Sorin Grindeanu for prime minister, while PNL, USR and UDMR back MEP Ilie Siegfried Mureșan. President Nicușor Dan convened a meeting at Cotroceni Palace on Friday evening, but neither side yielded.
Warning against backsliding
Bolojan cautioned that fiscal discipline cannot be taken for granted. Without sustained effort, the gains could evaporate.
The disease can return. Populism, clientelism and waste can push us back against the wall.
He thanked Romanians for their patience during the adjustment period.
Fiscal outlook
Looking ahead, Bolojan argued that lower deficit will free up tens of billions of lei currently spent on interest payments. Those resources, he said, can be redirected toward development, prosperity and better public services, provided the state remains fiscally healthy.
