Podgorica (MINA-BUSINESS) – Minister of Finance Novica Vukovic said that all proposals concerning the pension system must be realistically grounded, with a clearly defined fiscal framework and impact assessments.

“It is important that the proposed measures are viewed not only through their short-term effects, but also through their long-term impact on the public finance system,” Vukovic said in Parliament while responding to a question from MP Milos Konatar of the United Reform Action (URA).

Konatar asked Vukovic why he does not support the €40 pension increase proposed by URA lawmakers, given that pension increases of 0.38 percent in January and 0.95 percent in May were insufficient.

Vukovic said the pension system and the pension calculation model had been undermined over decades.

“It was not undermined by the Ministry of Finance or by this Government. Fiscal space is extremely limited, and that is why I ask everyone to bear in mind at all times that this is the budget of all citizens,” Vukovic said.

He added that funding for the regular indexation of pensions had already been provided for in the budget and that the Government guarantees the regular payment of all pensions without exception.