Budget deficit falls to 6.4% of GDP, social spending and pensions up 11.7%

Romania closed the first eleven months of 2025 with an improved budget deficit compared to the previous year, reaching 6.4% of GDP against 7.15% in the same period of 2024. This positive development reflects a more balanced management of public finances, with a direct impact on economic stability that affects all segments of the population, including older adults.

State revenues grew by 13% compared to last year, reaching nearly 592 billion RON, while expenditure recorded a more moderate increase of 9.9%. This dynamic suggests a more cautious approach to managing public resources — essential for the long-term sustainability of social protection systems.

Significant impact on the pensions and social care system

Social assistance expenditure represented one of the largest increases in the budget, totalling 229.37 billion RON — 11.7% more than in 2024. This substantial rise was driven in particular by the pension recalculation process carried out under Law no. 360/2023, a measure that has had a considerable financial impact on the state budget.

The state also allocated 2.88 billion RON to offset energy bills, a measure that particularly benefits lower-income older adults, who are more vulnerable to rising utility costs.

Improvements in tax revenue collection

Insurance contributions brought 189.71 billion RON into the budget, up 10.1% on the previous year. This increase was also supported by the removal of certain exemptions from health insurance contributions — a measure that strengthens the funding of the public health system, which is crucial for the elderly population, who frequently require medical services.

Income and salary tax generated revenues of 53.43 billion RON, recording a 19.4% increase. This performance was further boosted by a dramatic surge in dividend tax receipts, which rose by 72.6%.

Growing investment and development

A positive aspect for the long-term outlook of the social system is the 16.4% increase in investment expenditure, reaching 108.39 billion RON. This shift towards development projects may include the modernisation of medical and social infrastructure, which benefits the care of the elderly population.

European funds made a significant contribution, with 54.34 billion RON reimbursed — an increase of 47.5% compared to the previous year. These resources can finance important projects in the fields of health and social infrastructure, with direct benefits for the quality of life of older adults.