The public pension budget in Romania will increase by 10.7% y/y to RON 150.8 billion (EUR 30 billion) in 2025, accounting for 7.9% of the projected GDP, according to the budget planning quoted by the National House of Public Pensions (CNPP), Daniel Baciu, during the debates on the social insurance budget draft in the joint specialized committees of the Parliament, quoted by G4media.ro.

The ratio thus increases by some 0.2% of GDP from 7.7% of GDP in 2024.

The transfers from the central government budget, however, increase by more than 0.4% of GDP in 2025 compared to 2024.

The transfers from the central government budget to the public pension system are expected to increase to RON 35.4 billion (over EUR 7 billion, 1.85% of GDP), a significant 46% (RON 11.1 billion)  y/y from RON 24.3 billion (1.38% of GDP) in 2024. The share of pensions paid from the state budget will thus increase to 23.4% in 2025 from 17.8% in 2024.

iulian@romania-insider.com

(Photo source: Inquam Photos/Malina Norocea)