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A discussion on the indexation of pensions arose on Tuesday in the Presidency, where President Gitanas Nausėda met with the Board of Seimas.
Current law does not allow an increase in pensions if the gross domestic product or the wage bill falls.
The president hopes that solutions will be found for 8 percent. increase in pensions.
At that time, the Ministry of Finance predicts that the Lithuanian economy will contract by 7 percent this year. The forecast is expected to be updated in September.
The president says that next year’s budget must reflect “all the main objectives of the welfare state”, and one of the priorities is to reduce social exclusion and poverty of people of retirement age.
“Therefore, in view of the improvement in the economic situation this year and the positive economic forecasts for the next few years, it is necessary to find solutions for next year that will ensure higher, consistent and sustainable pension growth.” 15 minutes said Simon Krėpšta, economic adviser to the president.
Photo by Luke April / 15min / Simonas Krėpšta
According to him, the amendments to the Personal Income Tax Law registered previously, the reform of the public procurement system and the decisive decisions of the institutions on the initiatives to reduce the shadow in the Seimas would also contribute to accumulating more financial resources.
“Until the final approval of the budget, there is definitely the opportunity to make all the necessary decisions both in the Government and in the Seimas. The president hopes that solutions will be found for 8 percent. increase in pensions “, – said S.Krėpšta.
Seimas governors promise to amend the law so pensions can continue to be indexed despite the declining economy.
“It just came to our notice then. In my opinion, it may be necessary to make some adjustments to the law for indexing to take place, even if we are missing a few tens of percent of economic growth.” 15 minutes Ramūnas Karbauskis, leader of the Lithuanian Peasants and Greens Union, spoke.
Photo by Sigismund Gedvila / 15min / Ramunas Karbauskis
On Wednesday, Prime Minister Saulius Skvernelis also assured that pensions will grow next year, and the necessary funds are already foreseen in the 2021 state budget project.
The average pension in Lithuania is currently almost 380 euros.
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