BUCHAREST, Jan 29 (Reuters) - Romania's centre-left government will raise pensions and wages in the public sector by 5 percent in 2009, matching its expected average inflation rate, Prime Minister Emil Boc said on Thursday.
"In 2009 wages and pensions will rise as much as the inflation rate," Boc told a briefing after a government meeting.
The increases will take place in two stages in May and November, he added.
This year's budget is seen as a key test for the five-week-old cabinet, with economists and markets waiting for convincing signs the government will conduct prudent fiscal policies, after loose spending by the previous cabinet sparked ratings downgrades. (Reporting by Bucharest newsroom; Editing by Stephen Nisbet)