The state social security budget is running a 4.1 billion-RON (almost 1 billion-euro) deficit five months into this year, with the medium and long-term sustainability of the pension system becoming increasingly uncertain if the economy does not recover and the system is not reformed.
The situation appears to be under control if we look at the budget execution at the end of May, where the social security budget is running a slight surplus, of 89.3 billion RON. But the pension budget was once again saved by the state budget, with the surplus coming from a 4.23 billion-RON (around 1 billion-euro) transfer from the state budget.
The social security budget has been recording chronic annual deficits since 2006, with last year seeing the highest deficit in 10 years, of around 6.3 billion RON (1.5 billion euros), accounting for 15% of annual pension spending.
With around 5.7 million pensioners in total, the number of contributors is 4.9 million. Under the circumstances, the ratio is 0.8 payers to 1 beneficiary, compared with 1990, when there were 2.2 payers per 1 beneficiary.
The state social security budget is running a 4.1 billion-RON (almost 1 billion-euro) deficit five months into this year, with the medium and long-term sustainability of the pension system becoming increasingly uncertain if the economy does not recover and the system is not reformed.
The situation appears to be under control if we look at the budget execution at the end of May, where the social security budget is running a slight surplus, of 89.3 billion RON. But the pension budget was once again saved by the state budget, with the surplus coming from a 4.23 billion-RON (around 1 billion-euro) transfer from the state budget.
The social security budget has been recording chronic annual deficits since 2006, with last year seeing the highest deficit in 10 years, of around