Diana Dragutinović: “From the budget firstly for the neediest”

If September pensions were to see extraordinary increase of 10 percents, and seven percents in October based on regular indexation policy, the total pensions’ nominal growth in this year would reach round 40 percents, while their real growth, aligned with this year’s inflation of some 12 percents, would be 28 percents. In no country is possible, that with production growth levels of 7-8 percents, incomes of 1.6 million population, in this case the pensioners, have real growth of 28 percents without that causing significant inflator pressures, said for Politika daily Minister of Finance Diana Dragutinović, PhD.
The Minister is in favor of differentiated pensions’ increase which would reduce the gap between minimal and maximal pensions, i.e. pro increase of the minimal pensions only. However, she is against Regulation that would, according to the Prime Minister’s announcements, secure extraordinary pensions’ increase as of September because the Law regulating pensions issue is in force.

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 Diana Dragutinovic, Interview for Politika daily, July 31,2008