Support for pensioners

Romanian pensioners with small incomes will receive financial aid from the government.

Ştefan Stoica, 14.12.2021, 14:00

Romania’s draft budget for 2022 is not ready yet but the governing coalition made up of the PSD (Social Democratic Party) — PNL (National Liberal Party) – UDMR (Democratic Union of Ethnic Hungarians in Romania) hopes to finalize it in due time for it to be approved by Christmas. There are, however, several certainties related to the budget. One of them is that pensioners with low incomes of up to 320 Euros will next month receive substantial aid from the state to pay their bills. The measure has been agreed upon in the governing coalition, so, 2 and a half million pensioners will already have their pensions augmented in January to 440 Euros.

The social package for the poorest of the pensioners will have an impact on the budget estimated at over 500 million Euros, said the minister of labor and social protection, the Social Democrat Marius Budăi. He explained that the aid would be granted proportionate with their current revenues. For instance, those with pensions of 1,000 lei that is about 200 Euros will receive 1,200 lei that is around 240 Euros. Eventually, 2.5 million Romanians will receive, in January pensions of 2,200 lei that is about 440 Euros. This is not the only social measure provided for in the governing program. 2022 will also bring about increases in child allowances, in salaries, pensions and indemnities for people with disabilities.

Marius Budăi has pointed out that the biggest impact on the budget will be created by the increase in the pension point, amounting to almost 12 billion lei, that is 2.4 billion Euros. As of 2022 the minimum gross salary is to grow up to 2,550 lei that is about 510 Euros. For all the increases it has promised, the government needs to find financial resources without augmenting taxes or imposing new ones. PSD and UDMR have tried to introduce a 1% surcharge to be levied on companies with a turnover of more than 100 million Euros, to obtain more money for investments in healthcare and education. But the Liberals have opposed the attempt, given that the business environment rejected the intention. The measure has been eventually rejected, and the Liberal PM Nicolae Ciucă has given assurances that no such tax will be levied on companies.

The Social Democratic finance minister Adrian Câciu has also promised that the budget will be set up without introducing new taxes and that any change of the taxation system will be made in a predictable way, following dialogue with the private business environment. He has presented a first version of the draft budget for 2022. The leader of the PNL, the former prime minister Florin Cîțu has called attention to the fact that the budget deficit needed to stay at 5.84% of the GDP and investments should remain at 7%, according to the common governing program. He expressed confidence that the budget for 2022 will be approved by December 23. (LS)