Bucharest faces severe budget crunch amid economic crisis

The city of Bucharest is confronting a serious financial shortfall amid a mounting economic crisis, with the capital’s municipal budget dwindling to just 5 million lei—roughly $1 million.

The city’s mayor Ciprian Ciucu revealed the dire fiscal situation, highlighting that the administration’s financial flexibility is extremely constrained due to its reliance on decisions made by the central government. In this context, the municipality will have little choice but to implement stringent austerity measures, which, the mayor noted, are effectively unavoidable, Caliber.Az reports, citing Russian media.

Ciucu further explained that an upcoming reform package is set to introduce significant structural changes, including the consolidation, restructuring, and closure of several municipal enterprises, administrative bodies, and government institutions. He acknowledged that these measures will be politically unpopular and carry considerable costs, but described them as unavoidable given the fiscal reality.

Romanian Prime Minister Ilie Bolojan emphasized that the country as a whole is navigating a challenging economic period. He attributed the current crisis to years of excessive government spending. Romania’s budget deficit peaked at 9.4% of GDP in 2024 and was reduced to 8.4% by the end of 2025. Authorities are targeting a further reduction to 6.4% in 2026.

By Vafa Guliyeva