Analysis Tough negotiations in the coalition for pensioners’ money. Where could the Government get the aid requested by the PSD

The parties in the governing coalition are still trying to reach a consensus on the state budget for 2026. The PSD conditions the adoption of the normative act along with a social package, which includes one-off aid for pensioners. Contacted by Adevărul, the representatives of PNL and USR see with reservations the initiative of the social democrats, given that Romania will have to fall within a deficit target of 6.2% of GDP this year.

With an estimated budget impact of 3.2 billion lei, the proposal put on the PSD Coalition’s table includes direct support for pensioners, structured in two annual installments (April and December):

1,000 lei granted in two installments of 500 lei for seniors who receive a pension of less than 1,500 lei.

800 lei granted in two installments of 400 lei for pensioners with incomes between 1,501 and 2,000 lei.

600 lei granted in two installments of 300 lei for those with monthly incomes between 2,001 and 3,000 lei.

Also, the social democrats propose elimination of the CASS quota (10%) for certain categories, including mothers on parental leave and war veterans.

“The money is found in the budget envelope”

“Like every year, there is money in the state budget for support for vulnerable people. In 2025, support was given for pensioners, in two installments of 400 lei each, not 800 lei. So, in the same envelope, in the end, we close. There were 250 billion lei in social assistance, which means pensions, allowances, support measures for vulnerable people and this one-off support. The source of funding, because everyone asks and it is a false discussion in the public space, it does not exist as a distinct funding source is the state budget for the social package. detailed the former finance minister, Adrian Câciu (PSD) for “Adevărul”.

PNL and USR ask PSD to indicate funding for the “social package”

On the other hand, the liberals do not support the PSD initiative, which they say has no source of funding.

“PSD talks about a “social package”, but the reality is that Romania needs, above all, budgetary coherence and responsibility. You cannot support credible social measures while blocking the budget and keeping the package of economic measures for the business environment on standby. They voted and assumed economic measures alongside Ilie Bolojan, participated in the decision and talked about responsibility. Today, the same measures are contested, and in parallel a new social package is promoted, without explaining very clearly the sustainable source of financing. Investors expect predictability, entrepreneurs expect clear signals, and the economy needs stability.” sent the PNL deputy, Raluca Turcan, for “Adevărul”

Even USR does not necessarily see the PSD initiative with good eyes, given that, says the party’s spokesperson, Cristian Seidler, Romania must reduce the budget deficit.

“When the budget is drawn up, there are a lot of requests. When a ministry has a request, it’s good to specify what the source of funding is. Romania can no longer afford deficits since the time of the Ciucă and Ciolacu governments. Saying that it is financed from the deficit means taking some loans that we will pay dearly in the future. We can’t continue to spend much more than we have with the hope that things will work out. I’m not saying yes, I’m not saying no. I’m just saying let’s see what is the source of funding”, Seidler stated for “Truth”.

The UDMR did not want to convey a point of view regarding the PSD initiative.

Where does the money come from? Adrian Negrescu: “We are reaching the reduction of budget expenses”

According to the economic analyst Adrian Negrescu, if the PSD measure will be accepted in the Coalition, the Government would most likely resort to new spending reductions.

“It remains to be seen where the money will be taken for these aids, which, from my point of view, should be targeted even better, not to all pensioners, but only to those who really have a difficult situation in terms of income and the very high bills they have to pay, especially in the winter period. There are two big and broad options, so to speak: reducing public spending or increasing taxes. I think no one can talk about increasing taxes in 2026, considering the huge burden placed on the shoulders of the population and companies. I believe that, fortunately, we are reaching the reduction of budget expenses and I hope that the ordinance regarding the reduction, symbolic from my point of view, of state expenses, which is to be approved this week in the Government, will be only a first step in the process of restructuring the Romanian state”. explained Adrian Negrescu.

In his opinion, the best solution to cover the expenses would be to strengthen ANAF controls, especially regarding smuggling.

“Yes, we will collect more money from combating evasion. Finally, ANAF will be digitized in 2026, and I hope that the Government will take into account an extremely important target: smuggling, which has exploded in Romania in the last 2 years, against the background of inflation and the decrease in the purchasing power of the population. Smuggling has also increased as a result of Romania’s entry into Schengen. From the southern part of the country, all kinds of goods imported from China, but also counterfeit goods, especially clothing, shoes, cigarettes and other excisable products, which, unfortunately, have invaded the Romanian market”, emphasized Negrescu.