Finance Minister Alexandru Nazare rejects scenarios of a VAT increase in 2026 and says that no new taxes are foreseen in the budget projection currently being worked on.
At the same time, the official argues that it is „premature” to talk about a possible pension thaw, warning that any increase must be done in a sustainable manner and within the limits of the deficit target for next year.
The official stated on TVR Info that the budget project is built without this hypothesis and relies on the measures already adopted, alongside strict fiscal-budget discipline.
"We do not have this hypothesis of a VAT increase"
Alexandru Nazare insisted that the VAT increase is not included in the current projections of the Ministry of Finance.
"I have said it, I believe, every month of the past year, and in September, and in October, and in November, and in December, and I say it today: we do not have this hypothesis of a VAT increase for 2026. We have not operated with this hypothesis in the budget projection that is currently being worked on today, and we do not have other taxes projected for 2026. All these things take into account the fact that the measures adopted last year will be sufficient this year, in 2026, of course, alongside the fiscal-budget discipline, which is absolutely necessary, so that we reach 6.2%," the minister said.
When asked if he completely rules out a VAT increase, Nazare reiterated that this option was not included in the budget construction. "We did not consider such an increase in budget construction," he assured.
"A responsible budget means correctly evaluated expenses and revenues"
The Finance Minister emphasized that tax predictability depends on how the budget is constructed. "We strive very hard to build a responsible budget. A responsible budget means correctly evaluated expenses, not undervalued, and correctly evaluated revenues, not overvalued," said Nazare.
He explained that problems in past years stemmed from incorrect estimates and flawed budget construction.
"The problems from past years essentially started from budget construction. Through correct budget construction, we can ensure that, during the year, the better we estimate and project the money - you remember that last year budgets for salaries at certain agencies and ministries were depleted and it wasn't even autumn - so, the better we project them, the fewer surprises we will have in the second half of the year or in the middle of the year," added Minister Alexandru Nazare.
Pension thaw: We are not there yet
The Finance Minister stated that discussions about a possible pension thaw are currently "premature" and that any decision must be based on budget execution data.
"Before we talk about thaws, we must demonstrate a significant improvement in the budget situation. Otherwise, it would be just promises or commitments," said Nazare, adding that many Romanians have grown tired of promises that later proved unsustainable.
He emphasized that in the past, there were salary and pension increases made "without having the sources for these increases," which had negative effects on the budget.
When asked about the protests announced by several professional categories, the minister recalled that the decision to freeze was made in the coalition last summer and is directly linked to respecting the deficit target.
"Without this freeze, we cannot achieve our deficit target in 2026," he said, explaining that after "successive, unsustainable increases for years," it is difficult to believe that thaws can be made within the current budget.
However, Nazare left open the possibility of reconsidering the subject, depending on the evolution of budget data. "As we progress through the year and the situation improves, things can be discussed. But we are not there yet."