Romania's Government plans to increase pensions by at least 6% next year while child allowances will go up by 20% from January 1, 2022, the interim labor minister, Raluca Turcan, said on Monday, November 1.

"A realistic and sustainable budgetary effort for next year means an increase in allowances by 20% from January 1, so an overall increase in expenses of about RON 350 million per month, in addition to this year's expenditure.

Also, pensions will be indexed by at least 6 %, the intention being for this increase to be higher," Turcan stated according to Agerpres.

She mentioned that people need support to cope with the pressure of rising prices, but the Government must maintain the budget balance, investments and the prospect of economic growth, which represent the real basis for revenue growth.

She also explained that Romania currently spends about RON 133 bln (EUR 26.8 bln) per year on pensions, allowances, welfare benefits and unemployment benefits, and that this sum represents over 90% of the state's fiscal revenues, hinting that there's no room for higher growth in these expenses.

(Photo: Gov.ro)

andrei@romania-insider.com