Romanian Govt To Set Social Aid Cap Below Guaranteed Minimum Income - PM

Romanian Labor Minister Ioan Botis said Monday that the maximum income cap per family member required to receive heating subsidies was kept at 615 lei (EUR1=RON4.2511), and added the categories of heating subsidy beneficiaries have been more clearly defined. Therefore, people who own more than one home or vehicles with an engine capacity exceeding 1,600 cubic meters will no longer receive heating subsidies.

Evaluations show that over 10% of the 3.2 million families that are granted heating aid will lose this benefit.

People close to talks in the Government told MEDIAFAX Tuesday that Romanians with bank deposits of more than RON3,000 might no longer receive heating subsidies starting with the winter of 2010-2011.

Heating aid might also be cut for owners of plots of land larger than 1,000 square meters or farm animals like cattle or pigs. The sources said the full list of goods making their owner ineligible for heating aid is still being discussed.

A draft act drawn up by the Labor Ministry and presented last week by MEDIAFAX, said heating subsidies will be granted according to the income categories provided by Law 416/2001 regarding minimum income for social benefits. This would cut the number of heating subsidy beneficiaries by over 400,000 and contributing RON10.6 million to the state budget in 2010.

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