Child allowances to gradually increase till July 2022

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Labour minister Violeta Alexandru said there is not enough money in the state budget to double child allowances as of August 1, as the law stipulates. So, the ministry proposes a gradual increase by 2022, by around 20pc every stage. The first rise is to happen starting September 1, 2020.

The minister said that RON 14 billion would be needed by the end of 2022 for the child allowances. This year the budget impact is RON 500 million for the months till the end of the year. Another RON 3 bln will be added next year, and RON 2.8 bln in 2022.

The next rises by 20pc each are scheduled from January 1, 2021, July 1, 2021, January 1, 2022 and July 1, 2022.

A child allowance is currently RON 150/per child, and are supposed to double to RON 300.

Finance Minister Florin Citu told B1TV on Tuesday that we are in a difficult global context. “I don’t think you’ll find another country in the world to do that, to double allowances. At the same time, we are doing it , but in stages, one this year, another substantial one as of January 1, 2021 and another one after that”, he said.

Citu argued that it is a huge financial effort for the budget, as the money could have gone to investments that could create added value and guarantee the rise of the child allowances in the future.

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