In brief
- Three budgets, 442.8 million lei in revenue. The joint orders published on 22 October 2026 approve the revenue and expenditure budgets for 2026 of the companies Titan Power S.A., Uzina Mecanică Cugir S.A. and Tohan S.A. Their combined revenue comes to 442.8 million lei, expenditure to 434.7 million lei and cumulative gross profit to 8.1 million lei, which is 1.84% of revenue.
- 70 days left of the year they budget for. By 22 October 2026, 295 of the 365 days of 2026 had passed, or 80.8%. In the 70 days left, the three companies have to carry out, on paper, investment expenditure of 545.4 million lei, which is 102.6 million lei more than their revenue put together.
- 47.5 million lei in overdue payments at Tohan. Row 58 of the annex to order no. 1.571/1.426/1.399 shows overdue payments of 47,510,000 lei, which is 58.3% of the company’s total revenue and almost exactly what all 398 of its employees cost in a year. Its overdue receivables, the money others owe the company, come to 6,000 lei.
- Two inconsistencies that the published text does not close. At the Cugir plant, the profit left after reserves is 5,527,000 lei, while the row requiring a minimum of 50% in payments to the budget or in dividends is entered as zero. At Cugir and at Tohan, labour productivity does not come out of the formula printed in the very same row.
Published: Official Gazette of Romania, Part I, no. 886 of 22 October 2026, pages 8-16
In force from: 22 October 2026, the date of publication, because Article 2 of each of the three orders provides only for publication in the Official Gazette of Romania (Monitorul Oficial), without setting a later date
On 22 October 2026, in the same issue of the Official Gazette of Romania, the state approved the 2026 budgets of three companies it controls, with combined revenue of 442.8 million lei and cumulative gross profit of 8.1 million lei. Two of them, the Cugir plant and Tohan, are subsidiaries of ROMARM National Company S.A., the state holding that groups together the armament and ammunition factories. The third, Titan Power, falls under the authority of the Ministry of Energy. This is the second grouping of its kind in two days: on 21 October 2026, also published together, came the 2026 budgets of AIAS, CERONAV and Medserv Min.
Each of the three orders is signed by three ministers and has a single substantive article: the budget in the annex is approved. The legal basis invoked in all three preambles is the same, Article 4(1)(b) of Government Ordinance no. 26/2013 on strengthening financial discipline at certain economic operators in which the state or the territorial administrative units are sole or majority shareholders, approved with additions by Law no. 47/2014. The annexes are reproduced in facsimile, that is, photographed from the original form, and each contains all 59 rows of the standard budget form: revenue, expenditure, result, profit allocation, investment and a final block of underlying data. All the amounts in the tables are expressed in thousands of lei, so they are multiplied by 1,000 to arrive at lei.
The three companies do very different things. The company Uzina Mecanică Cugir S.A., based in Cugir, Alba county, makes infantry weapons and mechanical components. Tohan, at Zărnești, Brașov county, produces ammunition and ammunition components. Titan Power, registered in Bucharest at 71 Buzești Street, with unique registration code 40817209 and entered in the trade register in 2019, does not state its line of business in the order, and the shape of its figures does not look like that of a factory: it has 7 employees on average, spends 112.3 million lei of its 115.4 million lei of operating expenditure, or 97.3%, on goods and services bought from outside, and has investment of 115.1 million lei scheduled. In short, it buys and builds through others.
What it changes in practice
From 22 October 2026, the three companies may spend only within the limits set out in the published annexes. The figures are not indicative estimates: the ceiling on staff expenditure, the average monthly earnings per employee and the amount under investment expenditure are limits the management answers for, and overshooting them shows up at the first audit. The table below puts the three budgets on the same rows, so that it becomes visible how little they have in common.
| Indicator (thousand lei unless otherwise stated) | Titan Power | Uzina Mecanică Cugir | Tohan |
|---|---|---|---|
| Total revenue (row 1) | 118,741 | 242,565 | 81,500 |
| of which financial revenue (row 5) | 3,590 | 5,500 | 610 |
| Total expenditure (row 6) | 118,606 | 235,565 | 80,500 |
| Expenditure on goods and services (row 8) | 112,279 | 129,295 | 22,650 |
| Staff expenditure (row 10) | 2,168 | 87,795 | 47,595 |
| of which salary-related expenditure (row 11) | 909 | 76,911 | 35,845 |
| Expenditure on the management and control mandate (row 16) | 1,211 | 1,248 | 299 |
| Gross result, profit (row 20) | 135 | 7,000 | 1,000 |
| Net profit (row 26) | 113 | 5,877 | 1,000 |
| Covering losses from previous years (row 29) | not filled in | not filled in | 950 |
| Payments to the budget or dividends (row 34) | 53 | 0 | 0 |
| Sources of investment financing (row 46) | 161,543 | 369,095 | 61,257 |
| Investment expenditure (row 49) | 115,085 | 369,095 | 61,257 |
| Average number of employees (row 51) | 7 | 928 | 398 |
| Average monthly earnings per employee, in lei (row 52) | 10,821 | 7,379 | 9,650 |
| Total expenditure per 1,000 lei of revenue, in lei (row 57) | 999 | 971.1 | 988 |
| Overdue payments (row 58) | not filled in | 0 | 47,510 |
| Overdue receivables (row 59) | not filled in | 920 | 6 |
For employees, the direct effect is the earnings ceiling. At Titan Power, the approved average monthly earnings are 10,821 lei, at Tohan 9,650 lei, and at the Cugir plant 7,379 lei, the lowest of the three even though that company has the most people, 928 on average. The gap between Titan Power and Cugir is a factor of 1.47. The 1,333 people in the three companies together cost 113.7 million lei a year in salary-related expenditure, which is 7,106 lei a month on average per employee, if the published amount is divided by the published number of people.
For suppliers, the most concrete effect is at Tohan. The company enters the last months of the year with overdue payments of 47,510,000 lei, on a revenue budget of 81.5 million lei. The budget provides no separate source for settling them: the approved gross profit is one million lei, of which 950,000 lei goes to covering the accounting losses of previous years and the remaining 50,000 lei to legal reserves. The row showing the profit left at the company’s disposal is zero. In other words, the approved budget acknowledges the debt but contains no payment plan.
For the state budget, the effect is close to nil. Of the three companies, only Titan Power allocates anything in the row for payments and dividends, 53,000 lei, and even that does not go to the state budget: row 35, dividends due to the state budget, is not filled in, while the whole amount appears in row 37, dividends due to other shareholders, without the order saying who those shareholders are. The other two enter zero in the same row.
What has changed compared with the previous situation
Until 22 October 2026, the three companies operated through 2026 without a budget approved by a published order. That does not mean they did not spend: it means they spent on the basis of internal decisions, and the orders published now fix the framework retroactively for ten months already used up and prospectively for two. The real change brought by publication is that the limits become enforceable and verifiable from the outside, by the Court of Accounts, by the trade unions and by anyone who reads the Official Gazette of Romania.
The second new element is the timeline of the signatures, which can be read straight off the head of each order. At Titan Power, the Ministry of Energy signed on 22 September 2026, the Ministry of Labour on 7 October 2026 and the Ministry of Finance on 19 October 2026, so 27 days passed between the first signature and the last. For the Cugir plant, the Ministry of Economy signed on 25 September 2026, the Ministry of Labour on 30 September 2026 and Finance on 19 October 2026, that is 24 days. At Tohan, 25 September, 29 September and 19 October 2026, again 24 days. All three received the Ministry of Finance signature on the same day, 19 October 2026, and were published three days later. In all three, the Ministry of Finance is the last to sign.
The third element is the structure of representation. In all three orders, the Ministry of Finance and the Ministry of Labour sign through state secretaries, and in the two ROMARM orders the Ministry of Economy also signs through a state secretary. The only signature by a minister in person is the one from the Ministry of Energy, on the Titan Power order. Three of the offices involved are held on an interim basis, as the titles in the preamble show.
Advantages and disadvantages
What it improves
- The figures become public and comparable. Anyone can put the three budgets side by side, as was done in the table above, and see that a company with 7 people has investment of 115.1 million lei scheduled.
- The arrears reach the Official Gazette of Romania, so they can be tracked from outside. Row 58 of the Tohan annex shows 47,510,000 lei, and row 59 of the Cugir annex shows overdue receivables of 920,000 lei. Without publication of the budget, neither figure would have surfaced anywhere.
- The ceiling on average monthly earnings per employee is set down in black and white for each company, so a rise above it can no longer be justified by an internal decision.
- The allocation of profit is detailed row by row, from legal reserves through to dividends, which allows the arithmetic of each destination to be checked.
- All three annexes pass the basic coherence test: revenue minus expenditure gives exactly the gross result entered, and the subtotals add up to the totals, checked on each of the six tables in the issue.
- Grouping the two ROMARM subsidiaries in the same issue makes the contrast between them visible: Cugir with no overdue payments and a gross profit of 7 million lei, Tohan with 47.5 million lei in arrears and a gross profit of one million lei.
What remains a problem
- The budget for 2026 is approved 295 days into the year. For ten of the twelve months, the document no longer guides any decision, it merely confirms some already taken.
- For the Cugir plant, the row requiring a minimum of 50% in payments to the budget or in dividends is zero, even though the profit left after reserves is 5,527,000 lei. The published text does not let the reader establish whether the company owes nothing or at least 2,763,500 lei.
- The average monthly earnings per employee at Cugir and at Tohan cannot be reconstructed from the published rows. At Cugir, the 76,911,000 lei of salary-related expenditure divided by 928 employees and by 12 months gives 6,907 lei, not 7,379. For Tohan, the 35,845,000 lei divided by 398 employees gives 7,505 lei, against the 9,650 printed. Both rows refer to an underlying annex that is not published.
- Labour productivity does not come out of the formula printed next to it, neither at Cugir nor at Tohan, and this row carries no reference note to any unpublished annex.
- The Titan Power order does not say what the company does, nor who the shareholders receiving the 53,000 lei in dividends are, even though it is the state that approves its budget.
- The rows for overdue payments and overdue receivables at Titan Power are left blank rather than entered as zero, which makes it impossible to tell whether the company has no arrears or simply did not report them.
- The formulas printed at the head of the rows are wrong in several places. At Cugir, row 1 is described as the sum of rows 2, 5 and 6, although row 6 is total expenditure, and row 11 is described as the sum of rows 13 and 14, when it is in fact the sum of rows 12 and 13.
Practical advice
- If you supply the company Tohan and have invoices outstanding, read row 58 of the annex to order no. 1.571/1.426/1.399 before signing a new contract. The 47,510,000 lei in overdue payments is a figure the issuer has owned, so it can be invoked in negotiation and in court.
- If you are negotiating pay at one of the three companies, start from rows 11, 51 and 52 of the annex that concerns you. Row 52 is the approved ceiling on average monthly earnings, and row 11 is the total amount out of which all salary-related entitlements are paid.
- Request underlying annex no. 2 through a public interest information request, under Law no. 544/2001, if you want to check how the average monthly earnings at Cugir or at Tohan were arrived at. Without it, the figure in row 52 cannot be verified.
- When comparing two budgets of this kind, look first at row 57, total expenditure per 1,000 lei of revenue. The 999 lei at Titan Power means one leu of margin for every thousand collected; the 971.1 lei at Cugir means almost thirty.
- Check the arithmetic yourself. Row 20 must be exactly row 1 minus row 6, and row 26 must be row 20 minus taxes. If it does not come out, you have a problem worth reading further into.
- For the full history of a company of this kind, look up the orders from previous years in the Official Gazette of Romania by the company name, not by the order number: the numbers change every year and at every ministry.
Frequently asked questions
Why do three different orders appear in a single article?
What does the note „mii lei” at the head of the annexes mean?
What are overdue payments and why do they matter more than profit?
From what date do these budgets apply?
Does the state receive dividends from these three companies?
Where can the exact text of the three orders be checked?
Errors and inconsistencies in the published text
- Order no. 1.562/1.428/1.416, annex of the company in Cugir, row 34 read together with rows 32 and 38 (pages 12 and 13). The accounting profit left after legal reserves are deducted is, in row 32, 5,527,000 lei. Row 34, whose printed heading requires „Minimum 50% vărsăminte la bugetul de stat sau local”, that is, at least half of the amount in payments to the state or local budget, or else dividends due to shareholders, is entered as 0, as is row 35. The entire 5,527,000 lei appears in row 38, as an own source of financing. The arithmetic of row 38 closes, but row 34 contradicts its own heading: the published act does not allow one to establish whether the company owes nothing or owes at least 2,763,500 lei, and the order invokes no derogation. By comparison, the Titan Power annex published in the same issue enters in row 34 exactly 50% of the profit left, 53,000 lei out of 106,000 lei.
- Orders no. 1.562/1.428/1.416 and no. 1.571/1.426/1.399, annexes for Cugir and Tohan, row 54 (pages 13 and 16). The row is headed „Productivitatea muncii în unități valorice pe total personal mediu (mii lei/persoană) (Rd.2/Rd.51)”, labour productivity in value terms per average total staff, in thousand lei per person, so the formula is printed in the act itself. Applied to the published figures, it does not give the published result: at Cugir, 237,065 divided by 928 gives 255.5, while the table shows 282; at Tohan, 80,890 divided by 398 gives 203.2, while the table shows 272. The deviations are 10.4% and 33.9%. Unlike rows 52 and 53, row 54 carries no reference note to underlying annex no. 2, so it ought to be verifiable from the act. That the formula is applied literally can be seen from the Titan Power annex, where the same division comes out exactly: 115,151 divided by 7 gives 16,450, the printed figure. Productivity calculated this way is one of the indicators against which the wage fund is reported, so the reader is left with two possible values for the same indicator.
Editorial analysis
The figure that says most about these three orders appears in none of the annexes. A budget for 2026 published on 22 October 2026 comes after 295 of the year’s 365 days have passed, that is, after 80.8% of the financial year. That leaves 70 days. In that interval, the three companies have investment expenditure of 545.4 million lei to carry out, which would mean a rate of nearly 7.8 million lei a day. The figure is not realistic, nor is it meant to be: the money has already been spent or committed, and the order comes to frame it. That overturns the document’s declared purpose. A budget approved in October for the current year is no longer an instrument of financial discipline, as the ordinance invoked in the preamble calls it, but an act of accounting regularisation.
The second thing that does not show up when the act is read from start to finish is how much management costs at Titan Power compared with the employees. Row 16, expenditure on the mandate contract and on other management and control bodies, committees and commissions, is 1,211,000 lei. Row 11, salary-related expenditure for all 7 employees, is 909,000 lei. Management and control therefore cost 1.33 times more than everyone who works in the company: roughly 100,900 lei a month for the governing bodies, against 10,821 lei a month for an employee. The ratio is completely reversed at Tohan, where the mandate costs 299,000 lei against 35,845,000 lei in wages. The two rows describe two kinds of company: Titan Power, with 7 people and investment of 115.1 million lei, has the structure of a project vehicle, and Tohan that of a factory with people in it.
The third element emerges from combining two rows of the same Tohan annex. The overdue payments in row 58, 47,510,000 lei, are almost identical to the staff expenditure for the whole year in row 10, 47,595,000 lei. The difference is 85,000 lei, under 0.2%. Put differently, as at 22 October 2026 the company owes roughly what it pays its 398 people in a full year. Its own overdue receivables, meanwhile, come to 6,000 lei: the ratio between what it owes and what it is owed is close to 7,900 to 1. Against that background, the budget approves a gross profit of one million lei and allocates 950,000 lei of net profit to covering losses from previous years, leaving zero at the company’s disposal. The document contains not one row showing where the 47.5 million lei is to be paid from.
The fourth element concerns the quality of the form, and here the responsibility lies with whoever prints it, not with the companies. Across the six tables of the issue, the substantive arithmetic closes without exception: at each of the three companies, total revenue minus total expenditure gives exactly the gross result entered, the subtotals add up to the totals, and the row numbering runs from 1 to 59 with no gaps and no duplicates. The formulas printed at the head of the rows, by contrast, are wrong in several places, and the errors differ from one annex to the next: at Cugir, row 1 is described as the sum of rows 2, 5 and 6, and row 11 as the sum of rows 13 and 14; at Titan Power, the description of row 7 has a row number lost in typesetting. None of them changes the result, since the hierarchy of the rows makes it clear, but all of them show that the form is circulating in versions the ministries have not reconciled. The real trouble appears in rows 52 and 54, where the printed figure can no longer be derived from the published rows, and the reader is left with nothing but to request an annex that is not published.
What should be changed
- Underlying annex no. 2 should be published together with the budget, at least with rows 151 and 152, to which the notes in rows 52 and 53 expressly refer. The practical effect: the average monthly earnings per employee become verifiable, and the gaps of 472 lei a month at Cugir and 2,145 lei a month at Tohan against the calculation from the published rows would have an explanation in plain sight.
- Row 34 should not be able to stay at zero without a note setting out the basis for the derogation. The practical effect: at the company in Cugir it would be immediately apparent whether the 5,527,000 lei lawfully stays with the company or whether the state is giving up at least 2,763,500 lei.
- Row 54 should be recalculated using the formula printed in it, or the formula should be corrected. The practical effect: it removes the situation in which the same indicator has two values, 255.5 and 282 at Cugir, 203.2 and 272 at Tohan, in an act that sets ceilings on staff expenditure.
- The rows for overdue payments and overdue receivables should be mandatory to complete, with zero where there are no arrears. The practical effect: at Titan Power, the absence of debt could no longer be mistaken for the absence of reporting.
- Each order should state, in a single line of the preamble, the company’s main line of business and its shareholding structure. The practical effect: the reader would know what Titan Power does and who collects the 53,000 lei in dividends from row 37.
- The deadline for approving the budgets should be treated as a deadline for results, not for procedure, and orders that miss it should show the date on which the company submitted its draft. The practical effect: it would become visible where the months are lost, since all the published data tells us is that the last signature, that of the Ministry of Finance, came on 19 October 2026 on all three, between 24 and 27 days after the first.
Original text of the legal act
The text below is reproduced in Romanian, the official form of publication.
The full text, as published in the Official Gazette of Romania
Official Gazette of Romania no. 886 of 22 October 2026, pages 8-16 16 pages PDF, 154 KB the act starts on page 8
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This article is for informational purposes only and does not constitute legal advice. For specific situations, consult a licensed attorney or tax advisor.