Economy

No budget for Romania’s new child allowance

President Klaus Iohannis announced on Tuesday the law doubling the country’s child allowance, but Prime Minister Ludovic Orban underlined that they will most likely postpone the implementation of this decision. They will make a decision on the law at the next government meeting, he added.

On December 18, 2019, the Chamber of Deputies, as the deciding chamber, adopted the bill initiated by the Social Democratic Party (PSD). But since that time, it has neither been implemented nor announced.

Last week, President Klaus Iohannis said that he will not reject this law, pointing out that the government should find a solution, that is, find the money to double the allowance. “This money was not budgeted, so the government must find a solution,” he added.

Iohannis thinks that there are indeed solutions to this problem, but the government must be very realistic when making a decision. A budget reallocation can be done only at the time of the budget adjustment, and the first adjustment will take place mid-year, he pointed out.

Last week, Prime Minister Ludovic Orban said that they will most likely postpone the implementation of the law.

According to the bill, infants up to 2 years of age will receive RON 600 (EUR 125) per month, while children aged 3 to 18 will receive RON 300 (EUR 60). Meanwhile, children with disabilities will receive RON 600 every month. The bill also requires that the amount of the child allowance be raised annually by a government decision.

Author: Orsi Sarány