Higher child allowances to increase Romania’s budget deficit to 2.76%
Romania’s budget deficit might rise to 2.76% from 2.55% envisaged by the Government’s budget planning after the Parliament endorsed an amendment to increase by 80% the child allowance, from RON 86 (EUR 18) to RON 150 (EUR 32), but changed…
Romania Insider · Journalist
· Updated · 1 min read
Romania’s budget deficit might rise to 2.76% from 2.55% envisaged by the Government’s budget planning after the Parliament endorsed an amendment to increase by 80% the child allowance, from RON 86 (EUR 18) to RON 150 (EUR 32), but changed the source of financing.
The opposition National Liberal Party (PNL) proposed the amendment, which was accepted by the ruling coalition.
But while the liberals wanted the child allowances financed from the money initially earmarked for special pensions (pensions paid by other principles than the contribution paid during the years in service to magistrates and top public servants), the senior ruling party, Social Democratic Party (PSD), insisted that, according to the law, child allowances must be paid from the state budget, according to local Mediafax.
After the lawmakers pass the budget bill, the Parliament should amend the law that regulates child allowances, to complete the child allowance hike, PSD head Liviu Dragnea explained.
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