Romania's government unveiled plans to raise some taxes and cut state spending that are expected to generate revenue worth 19.8 billion lei ($4.26 billion) in 2024 and 23.38 billion lei in 2025 in a bid to lower its ballooning consolidated budget deficit.

The draft decree, published by the finance ministry on Tuesday, aims to introduce an additional 1% tax on turnover for banking institutions and a minimum tax on turnover for large companies in case their profit tax is less than the new levy.

The decree also eliminates some tax exemptions, changes the tax regime for small enterprises and introduces spending curbs across public administration. The government plans to ask parliament for a vote of confidence on the new measures. ($1 = 4.6502 lei) (Reporting by Luiza Ilie; Editing by Jason Hovet)