Pendzin on increasing payments: without sources of funding for the initiative, it is populism
15 January 14:14
Economist Oleg Pendzin criticized the idea of sharply increasing social benefits without clearly defined sources of funding. He stated this in an interview with the YouTube channel "Komersant Ukrainian", commenting on legislative initiatives regarding pensions, salaries, and social standards.
According to the expert, different categories of payments are financed from different sources and therefore cannot be considered in general terms.
“In order to make decisions about any increases in payments, you need to have sources. When we talk about payments to educators and pensioners, that’s one source. When we talk about indexing salaries for military personnel, that’s a different amount and a different source,” Pendzin explained.
He stressed that a responsible member of parliament must submit a clear financial calculation along with the initiative.
“Along with the initiative, you must clearly specify where you will get the money to implement this initiative,” the economist noted.
Pensions and the “domino effect”
Pendzin pointed out that a sharp increase in the minimum pension automatically leads to an increase in all other pension payments.
“A tenfold increase in the minimum pension will automatically require a tenfold increase in the Pension Fund,” he explained.
According to him, an increase in the minimum pension leads to an increase in the maximum, average pension, and other payments.
“If you raise the minimum, everything else automatically goes up,” the expert emphasized.
The economist also criticized the figures announced for possible social standards in 2026.
“The initiators see the minimum pension at 25,000 and the minimum wage at 8,600 hryvnia in 2026. That means pensions will be higher than wages,” Pendzin noted.
In conclusion, Oleg Pendzin stated that the loud statements about increasing payments are purely political in nature.
