“Pension growth is part of the budget because it was mandated by legislation in force. At the same time it all depends on the budget execution. (…) At this time, the talk about pensions is irrelevant because those funds were not lowered at the budget revision. All expenses are uncertain. If the budget execution is bad, investments become uncertain and the payment of pensions will be an issue,” said Citu.
The government recently revised the state budget to direct more money to healthcare and to the labor ministry to cover furlough pay and other social protection measures, as well as a second economic support package to be implemented after Romania emerges from the state of emergency.
The new budget plan considers an economic downturn of 1.9% of GDP, which analysts deem optimistic, and a deficit of 6.7% of GDP.