The introduction of new pension funds into payment in a larger number than estimated caused higher pension costs than estimated, so the budget of the Ministry of Labor needs to be supplemented for the payment of pensions for December, according to the draft Decision on the Government’s agenda on Wednesday.

Payment of pensionsPhoto: Romanian Post / Facebook page

Why the Government is taking 196 million lei from the Reserve Fund to pay pensions in December

In the explanatory note to the regulatory act, it is noted that “law No. 318/2021 on the state social insurance budget (..) approved the amount of 96,214,823 thousand lei for the payment of pensions, of which payments in the amount of 89,830,484 have been made so far thousand lei.

The government emphasizes that the estimated payments to be made in December for the payment of pensions amount to 6,580,339 thousand lei and that under these conditions it is necessary to supplement the budget provisions for 2022 in the amount of 196,000 thousand lei.

Reason?

  • “Fixation of higher costs than estimated is due to the fact that new pension cases were included in the payment in a larger number than estimated.
  • In order to ensure the payment of pensions for December of the current year in full, it is necessary to supplement the budget of the Ministry of Labor and Social Solidarity by increasing transfers to the state social insurance budget.
  • Budget of the Ministry of Labor and Social Solidarity, in section 56.01 “Transfers of a general nature between different levels of administration”, title 51 “Transfers between units of state administration”, article 51.01 “Current transfers”, paragraph 51.01.07 “Transfers” from the state budget to the state budget social insurance”, is 11,742,170 thousand lei.
  • Of this, budget credits in the amount of 11,531,463 thousand lei have been used so far, the difference of 210,707 thousand lei is insufficient to fully provide the amounts needed in December of this year, which requires supplementing the approved budget in the amount of 196,000 thousand lei.” , this is shown in the explanatory note.

SEE DRAFT GEO AND KEYNOTE HERE