6533b7d3fe1ef96bd1261051

RESEARCH PRODUCT

THE ISSUES ON FINANCING THE ROMANIAN OLD AGE SECURITY BUDGET

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Social security systems are facing new challenges that differ significantly from those experienced decades ago, and which involve major implications for their financing. One of the most important components of social security systems is the public budget for old age insurances. The paper considers the main sources and constraints of the financing mix for social protection of old age and disabled persons in Romania during 2000–2010. After an introduction about the need of social protection in a society and the forms of social security systems, the paper continue with the particularities of EU member states social protection systems and Romania’s position, the paper presents the revenues of public pension budget, their analysis and, finnaly, some conclusions were underlined. The public pension system in Romania is 90% dependent on the number of companies and employees that activate in the economy, on the contributions received from them, filling shortfalls being covered by state budget. I appreciate that social tax burden should not be increased and the problem is not the financing, but the usage of money.