Romania’s Chamber of Deputies passed on Wednesday, December 18, the bill that doubles child allowances, with 179 votes for and 29 abstentions, G4media.ro reported.

The MPs of the ruling National Liberal Party (PNL) abstained from the vote.

Thus, children under the age of 2 will get RON 600 (EUR 125) per month, up from RON 300, while children between 2 and 18 will receive RON 300 (EUR 62.5) per month, up from RON 150.

The move is estimated to cost the budget RON 6 bln (just over 0.5% of GDP in 2020) and it was not considered when the Government drafted the 2020 budget planning with a 3.6%-of-GDP target.

The bill was actively promoted by the Social Democratic Party (PSD) after their government was overthrown in October.

PSD thus aimed to take revenge on the ruling Liberal Party (PNL), which also increased child allowances in March 2019.

The bill promoted by the Liberals raised allowances for children under 2 from RON 200 to RON 300 and those for children between 2 and 18 from RON 84 to RON 150.

In separate news, the deputies have postponed the vote on several other key bills: the bill on abolishing the so-called “special pensions” and the bill on the VAT rate cut from 19% to 15% (and from 9% to 5% for food). While the former is positive for the budget and broadly supported (except for special pension recipients, who are fiercely resisting the bill), the latter would mean another hole in the budget (just over 1% of GDP).

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editor@romania-insider.com