Pendzin on raising benefits: without a source of funding, the initiative is nothing but populism
15 January 14:14
YOUTUBE
Economist Oleg Pendzin criticized proposals to sharply increase social benefits without clearly defined sources of funding. He made these remarks in an interview with the YouTube channel "Komersant Ukrainian", commenting on legislative initiatives regarding pensions, wages, and social standards.
According to the expert, different categories of payments are funded from different sources and therefore cannot be considered in a generalized manner.
“In order to make decisions regarding 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 emphasized that a responsible member of parliament must submit a clear financial calculation along with the initiative.
“You must clearly specify, alongside the initiative, where you’re getting the money to implement it,” 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.
“Raising the minimum pension tenfold will automatically require a corresponding 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 cited regarding potential social standards in 2026.
“The initiators envision a minimum pension of 25,000 and a minimum wage of 8,600 hryvnias in 2026. That means pensions would be higher than wages,” Pendzin noted.
In conclusion, Oleg Pendzin stated that the high-profile announcements about increasing payments are purely political in nature.
