The pensioners, kneeling by the austerity measures. Analyst: “State should have been the first affected by austerity”

The austerity measures that will enter into force from August 1 will dramatically decrease the power of purchase of pensioners, given that the prices will increase by at least 2 to 6% only from the VAT increase, to which are added the final increases of the products caused by the increase of the electricity and fuel price, but also the food, but also the food.

Medications will be expensive by at least two percent

In Romania there are 2,784 mmillion pensioners with income less than 3,000 lei, who do not have to pay the 10% contribution for health, but their revenues will be severely affected by the other increases, which overlap the liberalization of electricity prices.

Specifically, from July 1, 2025, all the products that involve the use of electricity in the production process will be expensive and without applying the austerity measures that enter into force on August 1. After this date, the prices of the products will increase again only as a result of the increase of the excise duty on fuels.

The same product, expensive once from July 1 due to the liberalization of the electricity market and the second time due to the increase of fuel, will cost even more because of VAT increase, in some cases even by 6%.

Specifically, from August 1, the firewood and the thermal agent will cost pensioners by at least 6% more, after VAT will be increased from 5% to 11%.

It is expensive the tap water, but also the drugs

Another 2 percent will be recorded in the case of food prices, all foods, even those in which the commercial addition is capped, the pensioners will pay more for the tap water, but also for sewerage.

On the other hand, a pensioner who has to buy a monthly medicines will pay at least 2% more from August, only as a result of VAT increase, this percentage adding to the increase of production and transport prices as a result of the increase of electricity and fuels.

For example, a cardiac that now pays on a compensated recipe about 150 lei, only for VAT increase will pay 3 lei more.

Although it does not seem to be a major increase, for a pensioner who receives the social allowance of 1,281 lei, the minimum 2% in addition to medicines, water and sewerage, plus another 6 percent for firewood and thermal agent in winter, plus another 2 percent of all products that now have a VAT of 19%, can mean a lot as the pension is no longer indexed to it.

The latest statistical data of INS shows that a person spent on average last year 2,908 lei, of which 33% on food and non -alcoholic drinks and 8.9% on health, especially medicines.

Thus, non -alcoholic foods and drinks totaled 960 lei, VAT increase by 2% meaning almost 20 lei only from VAT increase, without other production and transport costs that will increase prices.

Regarding the drugs, the average expenses were almost 259 lei, the VAT increase by 2% meaning just over 5 lei.

In the case of pensioners with monthly revenues greater than 3,000 lei the revenues will decrease even more, considering that from August 1 they will pay the health contribution of 10% for which it exceeds the value of 3,000 lei.

Negrescu: Purchase power will decrease

Contacted by “Adevărul”, the analyst Adrian Negrescu said that the purchasing power of the pensioners will decrease.

“The freezing of pensions will hit especially those who have small pensions, up to 3000 lei. Their purchasing power will decrease as the effects of tax increases, inflation, will be seen in the economy. Increasing the price of medicines will probably put the highest pressure on the income of the pensioners.

Like everyone, the pensioners will have to adapt their expenses. They have nothing else to do than to restrict their expenses even more, if they still have to wait for better times.

How long this crisis will take, how much it will affect us remains to be seen. I hope that the austerity measures, meant to keep us in the area of ​​the countries recommended for investments, will be only temporary and, from 2026, to see the positive effects. This is because, in the end, this crisis is not caused by simple people and has no external causes.

We are in this situation because the state has spent excessively, we have come to have an annual deficit of 30 billion euros. We all suffer from this, although, normally, the state should have been the first affected by austerity.

Let us not forget, however, that the European Commission, the Fitch agency, told us green in front that they no longer trust the reform projects in Bucharest and that the only proof they accept is the increase of taxes. It is not their fault, it is not our fault, it is exclusively of those who have led Romania in the last 3-4 years ”the analyst Adrian Negrescu told “Adevărul”.

The more VAT increases from August 1

The value added tax increases from 1 August as follows:

– increase of the standard share from 19% to 21%;

– elimination of the application of the reduced quota of 5% and the application of a reduced quota of 11% for the operations currently subjected to the reduced quota of 5%, respectively for: the delivery of school textbooks, books, newspapers and magazines, the services consisting of access to castles, museums, memorial houses, historical monuments, architectural monuments, architecture and archaeological gardens, the delivery of thermal energy in the cold season, intended for certain categories of consumers;

– Increase of the reduced VAT rate from 9% to 11% for a narrower range of goods and services, respectively for: medicines for human use, foods for human consumption, with certain exceptions, water for irrigation, fertilizers and pesticides, water supply and sewerage services, buildings intended to be used as a child, and for old children's homes, handicap, accommodation and restaurant/catering services.

How much loses the pensioners monthly after CASS application

Thus, at a pension of 3,100 lei, CASS will be 10 lei. Other examples:

Pension 3,500 lei, CASS: 50 lei;

Pension 4,000 lei, CASS: 100 lei;

Pension 4,500 lei, CASS: 150 lei;

Pension 5,000 lei, CASS: 200 lei

Pension 6,000 lei, CASS: 300 lei.

Only from the collection of these contributions from the over 1.9 million pensioners, the state will raise almost 3.8 billion lei.

“For the people who make income from pensions that exceed the ceiling of 3,000 lei inclusive, under the conditions in which these persons pay the contribution of social health insurance in a percentage of 10% for the income from pensions that exceed this ceiling, it would result additional annual revenues at fnnass of 3,784,093 thousand lei from a number of 1,960,804 pensioners ”is shown in the note of foundation of the draft normative act.