Presidential Counselor: 2019 Budget Might Not Ensure the Sums Required to Pay All Pensions

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In a press conference regarding the budget bill, the counselor said that the pensions budget was lowered by approximately RON1.2 billion from the initial draft of the bill, which brings the total budget beneath estimates based on average monthly pensions expenditure in 2018.

“In the budget project launched into public debate on January 31, pensions expenses from the budget of state social insurance was set at RON69.3 billion. After only one week, in the budget adopted by the Government on February 8, the pensions budget became RON68.1 billion, so 1.2 billion less. (…) It’s extremely important to clarify this situation which can show that budget does not ensure the required amount to pay all pensions. Our calculations show that pensions expenses are underestimated by about RON1.4 billion,” said the presidential counselor.

He added that pensions expenses could be estimated by using the average monthly expenditure for 2018, which was of RON5.51 billion per month, and would lead to a necessary of at least RON69.5 billion for the segment.

The budget deficit has decreased by 28 billion lei compared to 2025 and has fallen to 2.34% of GDP

Romanian President Klaus Iohannis announced on Wednesday that he will resend the 2019 state budget to the Parliament, after the Constitutional Court rejected his challenge on the bill earlier in the day.

The president criticized the ruling Social Democrat Party (PSD) again and requested the Parliament to make a “healthy budget” for Romania. He accused the social-democrats of significantly reducing the budgets of local communities and investments.