Bucharest operates on a model where operating costs and subsidies swallow most of the city’s budget, leaving little room for real investment. The 2025 municipal budget is around 11 billion lei; over 60% goes to maintenance and subsidies, while only about 21% is allocated to development. The heavyweights that burden the budget year after year remain heating subsidies and public transport support.

1) District heating (CMTEB/Termoenergetica): subsidies + network losses = chronic pressure

Termoenergetica manages the transport and distribution of thermal energy, and its revenues rely heavily on municipal subsidies. In its 2025 budget, the company projects total revenues of about 2.35 billion lei, of which more than 1.26 billion lei are classified as “subsidies according to legal provisions.” In practice, the city hall directly sustains the system’s operation while covering the gap between the price citizens pay and the real cost of a gigacalorie.

The financial situation is further strained by arrears between Termoenergetica, Bucharest City Hall, and ELCEN. By the end of 2024, debts ranging from hundreds of millions up to around one billion lei were reported—delayed subsidies and systemic network losses that continue to undermine cash flow in 2025. Translation: unless network losses drop, subsidies will stay enormous.

2) Surface public transport (STB/TPBI): compensation, “tariff difference,” and personnel costs

Public transport is the city’s second-largest budget sinkhole. The 2025 STB budget shows total revenues of roughly 1.85 billion lei, of which about 1.23 billion lei come from service compensation and another 295 million lei from the “tariff difference.” Both represent public money used to bridge the gap between ticket prices and real operating costs. Personnel expenses exceed 1.17 billion lei. The takeaway: public transport is heavily subsidized, with most costs absorbed by salaries and daily operations rather than infrastructure investment.

Combined, subsidies for heating and transport exceed 1.8–1.9 billion lei in 2025, depending on later budget adjustments—making them one of the biggest slices of Bucharest’s municipal expenditure.

3) General operating expenses (administration and subordinate institutions)

Out of the total 11 billion lei, about 7.14 billion lei are regular operating costs—personnel, maintenance, utilities, and the aforementioned subsidies. The message is clear: keeping the city’s administrative machinery running costs far more than building or upgrading new infrastructure.

4) Sanitation and waste management: a major burden at district level

In the six administrative sectors, sanitation remains a heavy financial load. The systems vary: some districts operate through local public companies, others through private contractors—but in all cases, the final bill is steep.

• Sector 3: updated 2025 tariffs for waste collection, transport, and landfill—117.05 lei/m³ or 334.44 lei/ton for collection and transport, 238 lei/ton for disposal, and 190.40 lei/ton for circular economy costs. These rates directly impact both local budgets and household taxes.
• Sector 2: per-ton waste tariffs (residual and recyclable) increased in 2025, proportionally affecting total budget spending.
• Sector 5: new tariffs introduced by a Local Council decision in March 2025, covering collection, transport, and related services throughout the year.
• Sector 1: the long-running and costly relationship with Romprest remains under dispute; in parallel, updated prices for special equipment and emergency cleanups (e.g. 95 lei/hour for certain machinery) show that sanitation costs remain high.

Across the city, sanitation and green space maintenance consistently rank among the top three budget categories. The precise figures differ by sector, but the combination of rising tariffs and increasing waste volumes keeps financial pressure high.

5) Real investments: still secondary

The 2025 investment plan of Bucharest City Hall includes mobility projects (new trolleybuses, trams, and infrastructure upgrades), parking facilities, and selective building rehabilitations. Many are co-financed by European funds—around €385 million earmarked for mobility in 2025. Yet, the imbalance persists: investments still trail far behind operational expenses.

Top spending categories in 2025 (summary)

1. Heating subsidies (CMTEB/Termoenergetica) – over 1.2 billion lei directly to the operator’s budget, plus adjustments and related debts.
2. Public transport (STB) – about 1.5 billion lei in compensations and tariff differences; personnel expenses exceed 1.1 billion lei.
3. City Hall operational costs – roughly 7.14 billion lei, including subsidies.
4. Sanitation and waste services – updated tariffs and major contracts with significant impact on sector budgets.
5. Investments – present but still minor compared to daily operations; major mobility projects rely mostly on EU funding.

Key takeaways

• Bucharest’s budget model remains one of “survival” rather than development: huge spending just to keep essential systems (heating, transport) functional, with limited efficiency gains.
• Until network losses in the heating system are reduced and STB’s operational costs are optimized, subsidies will continue to drain the municipal budget.
• At the district level, sanitation remains a growing expense, with differing pricing policies across sectors that make cost comparisons difficult.

Sources

• Bucharest City Hall – 2025 budget proposal and approved structure (operational vs. development expenditure, aggregated subsidies).
• STB – 2025 budget and rectifications (revenues, compensations, tariff differences, personnel costs).
• CMTEB/Termoenergetica – 2025 budget (revenues, subsidies, expenditure structure).
• Termoficare debt context 2024–2025 – outstanding payments and ELCEN relations.
• Sector sanitation tariffs and 2025 updates – S3 (official tariffs), S2 (increases), S5 (new tariffs), S1 (updated hourly and equipment rates).