Romania’s Govt. seeks to have 2022 budget planning approved by Christmas

The Romanian Government will submit the budget planning for 2021 to the Parliament by December 20 so that it can be passed by the lawmakers before Christmas, PNL spokesperson Ionut Stroe announced, G4media.ro reported.

The ruling coalition will stick with the public deficit target of 5.84% of GDP, he added.

Speaking of the argument between the Liberals and the Social Democrats related to the pension budget and the Pension Law, Stroe said that former prime minister Florin Citu “only concluded” that the pension hike of January 2022 has a pretty important impact on the budget.

Besides raising the minimum statutory pension, the 10% overall rise of the public pensions brings the public pension system budget at 9.5% of GDP - just above the 9.4% cap set under the Recovery and Resilience Plan.

The 9.4% cap was set with a pension system reform in mind, former Liberal prime minister Florin Citu stated.

In contrast, the Social Democrats want to revive the existing Pension Law and question the 9.4%-of-GDP cap invoking the average 13%-of-GDP level of the public pension budget in the European Union.

(Photo: Gov.ro)