PM Boc: Pension spending deficit might reach 6pc of the GDP in the medium and long term
‘Unequal treatment extended to various categories of pensioners has not worked well. At the same time, the chronic debts of the social security system started in 2006. Today, in order for the public pensions to be paid in Romania, the Government has to loan 1.7 billion euros from rates and taxes in 2010 to the pension fund, after it loaned the same system 1.5 billion euros in 2009 for the fund to stay operational.
If the current system is not altered, the Government’s public pension spending deficit will increase from a current 1.3 percent of the GDP to 6 percent of the GDP in the medium and the long run. From a deficit of 1.7 billion euros we risk going up to a pension spending deficit of 4-6 billion in the medium and the long term,’ said Boc.