FinMin: Budget allocated to pensions rises to RON 136.3 billion

The budget allocated to pensions increases, as a result of the recalculation, by almost 50% compared to 2020, to 136.3 billion RON (approx. 27 billion euros), but, according to projections made by the Ministry of Finance, the share of pension expenditures in GDP remains constant, with downward trends in the period 2030-2031, Finance minister Marcel Bolos said on Wednesday."It is a proof of responsibility for the 4.7 million Romanians who are to receive the recalculation decisions. (...) 3.8 million pensioners are in the happy situation of having their pensions recalculated by percentages of up to 100%. It is, if you like, a historic period for what the reform of the Romanian pension system means, for what it means to remove inequities. So, from this point of view, we can say that the law, as a whole, has achieved its goal, which is to have a sustainable public pension system in Romania. (...) If in 2020 we had a budget allocated to pensions of 81.4 billion RON, in 2024, according to our estimates, the budget allocated to pensions rises to 136.3 billion RON. Here we are talking about 54.9 billion RON, so an increase of this budget by almost 50%, which signifies and highlights the effort we have made in this period of time to ensure the necessary financial resources, because over time there have also been failed attempts to recalculate pensions," Bolos told a press conference on the process of recalculation and distribution of pensions, organized at the National Liberal Party (PNL) headquarters.The minister stressed that, following the recalculation, about 100,000 pensioners will no longer have social allowance, but will move to the public pension system and reiterated that a monthly budgetary effort of 2.5 billion RON was assessed, respectively a cumulative impact of 10 billion RON by the end of the year."This money is included in the budget, we have it, so the payment of pension rights will take place because this money exists both in Romania's income and expenditure budget, in the state budget, and in our treasury. (...) It is the money included in the budget. So, all Romanians rest assured, these rights are paid on the date that is set by the National House of Pensions," Marcel Bolos pointed out.The minister recalled that the "pillars" for the reform of the pension system have been laid since 2021, through milestones 214 and 215 of the National Recovery and Resilience Plan.