Romania ran a consolidated budget deficit of roughly 2.66% of gross domestic product at the end of August, Finance Minister Marcel Bolos said late on Monday, and could enforce new tax measures from January if it continues to stabilize it.
The European Union state has overestimated its revenues for the year and is set to overshoot a deficit target of 4.4% of GDP.
It has asked Brussels earlier this week to accept a higher deficit target of 5.5% of GDP and Prime Minister Marcel Ciolacu said the European Commission was flexible pending reforms to cut public spending and boost tax income.
Bolos said the ruling coalition had yet to agree on the specific tax measures, including introducing a turnover tax for large companies and considering a special tax on large profits in the banking sector, similar to those in countries like Italy or Hungary.
Fiscal consolidation is key to ensuring that Romania continues to receive the European Union recovery funds that are underpinning infrastructure investment and economic growth.
Bolos said the measures could go to parliament for approval this month and depending on budget developments could be enforced from January rather than October.
"For three consecutive months we have managed to keep the budget deficit constant," Bolos told private television station Digi24. "If we manage to stabilize it, I think the most reasonable would be for the (new) measures to be enforced from January, the ruling coalition will decide."
The country has 46 billion euros worth of development funds allotted for 2021-2027, as well as 28 billion euros worth of recovery funds.
Romania holds presidential, general, local and European elections in 2024. (Reporting by Luiza Ilie; Editing by Kim Coghill)