RO economist: pensions and public wages could exceed budget revenues in 2021
The public payroll and pensions will amount to 27.5% of GDP next year in Romania, 0.8% of GDP more than the total tax revenues to the national budget (26.7% of GDP).
Andrei Chirileasa · Journalist
· Updated · 1 min read
The public payroll and pensions will amount to 27.5% of GDP next year in Romania, 0.8% of GDP more than the total tax revenues to the national budget (26.7% of GDP).
The projection, compiled by Raiffeisen Romania chief economist Ionut Dumitru (former head of the Fiscal Council), is based on assumptions that the pensions will rise by 40% - in line with the law that is in force at this moment but suspended temporarily by the Government.
The projection, quoted by Cursdegovernare.ro, also assumes that all the benefits passed by the Social Democrats, such as the RON 2,000 monthly COVID-19 bonus paid to the employees in the education system, are not reversed.
On November 4, the Government referred to the Constitutional Court the law that sets this bonus in the education system.
The Constitutional Court will decide on November 26 if a law with a significant impact on public expenditures (like the Pension Law, passed and promulgated last year), which does not mention the financing sources, breaches the Constitution.
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