BNR official says special pension bill may nearly double at 1.5% of GDP in three years
Romania pays 0.85% of GDP in special pensions, namely pensions not backed by prior contributions made by the recipients during their activity, and the ratio may reach 1.5% of GDP in two to three years, estimates Eugen Rădulescu, Director,…
Andrei Chirileasa · Journalist
· Updated · 1 min read
Romania pays 0.85% of GDP in special pensions, namely pensions not backed by prior contributions made by the recipients during their activity, and the ratio may reach 1.5% of GDP in two to three years, estimates Eugen Rădulescu, Director, Financial Stability Directorate, National Bank of Romania (BNR).
"In two to three years, we may reach 1.5%, and then it will be increasingly difficult to show that these are not only unacceptable but unbearable budget expenses, unsustainable", said Eugen Rădulescu, in the introduction of the '"Financial stability' conference, Economica.net reported.
He also mentioned that this year Romania must increase military spending from 2% of GDP to 2.5%, adding supplementary pressure on the public budget.
(Photo source: Dreamstime.com)
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