BUCHAREST, Dec. 30 (Xinhua) -- Romania's new coalition government approved the 2025 fiscal-budgetary plan on Monday, introducing several fiscal measures aimed at reducing the budget deficit to 7 percent of gross domestic product (GDP) by the end of 2025, as agreed with the European Commission.

Key measures in the "small train" ordinance include raising the tax on dividends from 8 percent to 10 percent and lowering the micro-enterprise threshold from 500,000 to 250,000 euros (519,880-259,940 U.S. dollars). The threshold is set to decrease further to 100,000 euros in 2026.

Salary and pension freezes for public sector employees were also announced.

Finance Minister Tanczos Barna pledged to avoid increases in value-added tax (VAT) and income tax while maintaining fiscal discipline. He stressed the importance of stability to retain investor confidence and secure access to European Union funds.

Barna said the final financial outlook, including expenditure forecasts, will be determined in January.

According to an emergency ordinance adopted by the government on Dec. 4, Romania's budget deficit is projected to reach 8.6 percent of GDP in 2024 based on cash methodology.

The ordinance has drawn widespread criticism from the business community and unions, which decried the lack of consultation and warned of potential price hikes and business closures, local media reported.

On Monday, protests broke out in Bucharest's Victory Square as the government approved the measures. Police officers, prison employees, and students demonstrated against the fiscal changes. (1 euro = 1.04 U.S. dollar) Enditem

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