Romanian Govt Eyes New Social Spending Cut Measures - Working Draft

The Romanian Government plans to eliminate exemptions from the payment of phone and radio-TV subscriptions for war veterans and also to cut allowances for people with disabilities and replace them with fixed sums, according to a Government working draft aimed at cutting social spending.

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According to the working draft, former political prisoners will no longer benefit from free road-rail transportation or exemptions from the payment of phone and radio-TV subscriptions.

The Government is to cut allowances for the disabled and grant monthly fixed sums, namely, 340 lei (EUR1=RON4.2737) for people with severe handicap, RON250 for people with accentuated handicap and RON35 for people with medium handicap. As regards people with disabilities who gain income, state allowances will be set at RON205 for severe handicap, RON160 for accentuated handicap and RON20 for medium handicap.

Monthly allowances of RON400 granted to those attending to people with disabilities will also be cut starting January 1, 2011. Also, the families of children with disabilities will receive allowances of RON91 for severe handicap, RON68 for accentuated handicap and RON33.5 for medium handicap.

Allowances granted to former political prisoners and revolutionaries will be kept at a level cut by 25%, while allowances granted to retirees in the public pension system, who are members of creation unions, are to be cut by 50%.

The new social spending cuts are to be applied starting January 1, 2011, according to the working draft.

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