PM Orban: PNL will double allowances as decided, in five steps

Prime Minister Ludovic Orban on Thursday said in Focsani that the child allowance will be doubled in five steps, as decided by the Government.

"The National Liberal Party (PNL) will double the allowance, as decided, in five steps, with the last steps scheduled for July 1 2022. For now, all that we have is an announcement made by the Constitutional Court of Romania (CCR) and we are waiting for the explanatory, depending on which we will decide what to do next. In our opinion, increasing allowances is a priority (...), but we must do it while considering the economic reality, and the available resources, so that this won't be a deceitful increase that we will not be able to sustain and that will generate disadvantageous economic consequences," PM Orban told a press conference.

The PM added that a doubling of the allowances at this point will lead to an increase in the budget deficit by more than a half percentage point.

"The doubling of the child allowance implies a budgetary effort of approximately 7 billion lei per year, which means a significant increase in the deficit of 0.6 per cent," said Ludovic Orban.

CCR on Thursday announced that it unanimously rejected the constitutional challenge filed by the Romanian Government and found the Law on the rejection of GEO No. 123.2020 on the modification of article 3 of the Law No. 61/1993 regarding the child allowance to be constitutional.

On August 19, the Deputies Chamber, in its capacity as decision-making forum, rejected Ordinance No. 123.2020 that modified and supplements article 3 of the Law No. 61/1993 regarding the child allowance.