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Romania Keeps Pension Frozen Next Year, Lowers Wages, Investment Budgets

Romania’s Government plans to keep pensions frozen at their current level throughout 2011, cut local budgets and funds for wages and investments, according to the draft state budget for next year, obtained by MEDIAFAX.
Romania Keeps Pension Frozen Next Year, Lowers Wages, Investment Budgets
Oana Gavrila
17 oct. 2010, 12:42, English

According to the draft budget, public pensions and the minimum guaranteed pension are to be kept at the same level as in 2010 and the pension point, an indicator used to calculate pensions, will stay at 732.8 lei (EUR1=RON4.2779). The minimum guaranteed pension is currently at RON350.

The Government earmarked RON46.2 billion (8.5% of gross domestic product) for pensions. The draft shows projections have been based on the country’s new pension law, which is pending reexamination and approval in Parliament.

Local authorities will see government funds cut down to half next year, part of the decentralization process, which will also affect funds available to pay teachers and public works.