Draft budget provides for 1.2bn-RON cut to social spending

Government representatives provide for a 1.2 billion-RON (285.7 million-euro) cut to the budget for social security and for benefits for families and children, before announcing how the relevant laws will be modified.

In other words, whether a new method of calculating the child benefits or the unemployment benefits is decided on or not, the Labour Ministry’s 2011 budget provides for a reduction in social security spending from 14.5 billion RON to 13.3 billion RON. The biggest fund cuts will be made to transfers to the pension house and to social securities (which will reach an overall 7.36 billion RON, down by 520 million RON against 2010) and to funds dedicated to benefits for families and children, which will be cut by around 500 million RON.
In fact, Labour Minister Ioan Botiș himself said recently that the state could save 500 million RON if the child benefits were granted only for a 12-month period. Yesterday premier Emil Boc said he would be the last to make a decision on cutting the duration of the maternity leave.
“We will make a decision after the public debate is over and after coalition talks. We will make a decision we will announce. Until then, of course, we are listening to all opinions on the issue and, after this period ends, we will announce the Government’s decision,” Boc was quoted as saying by Mediafax.