On 30 October 2026, the Ministry of Finance detailed the revenue shortfalls prompting the first 2026 budget rectification, which reduces consolidated budget revenues by nearly EUR 1 billion. Key underperforming chapters include VAT collections, corporate income tax, and excise duties, reflecting weaker-than-expected economic activity and consumption. The rectification law, approved by Government, reallocates expenditures toward healthcare while maintaining the 6.2% GDP deficit target. The Fiscal Council validated the assumptions.
Key Takeaways
- VAT Gap Widens: VAT revenues fell short by approximately EUR 600 million, signaling compliance challenges and reduced taxable consumption.
- Corporate Tax Dip: Profit tax collections dropped due to lower corporate profitability amid high energy costs and inflation.
- Expenditure Priorities: Healthcare receives the bulk of additional funding, while investment spending faces constraints to meet deficit commitments.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement