Monday, May 29, 2023

After warning from Treasury, project for equalization of retirement assets returns to study in Senate

Juan José Galliano, director of economic studies at the Ministry of Finance, issued statements on various radio stations warning about the possible negative impact of the bill, which seeks to equalize the retirement assets of the central administration and the civil service.

Galeano expressed his concern about the financial consequences that could result from this measure, affirming that it undermines the stability of fiscal funds and generates additional pressure on both the Treasury’s income and expenditure.

In an interview with Radio 1000, Galliano expressed the Treasury Ministry’s concern about the project being discussed in the Senate and advocated a comprehensive reform of the public sector retirement system.

He noted that the current fiscal deficit is significant, reaching USD 210 million per year, and that the proposal under consideration would add an additional USD 277 million, bringing the total deficit to USD 500 million.

The Director of Economic Studies highlighted the need to reform in a comprehensive manner, seeking homogeneous parameters across all sub-sectors and avoiding isolated solutions or partial modifications. According to Galeano, this global vision of the system will make it possible to reach a consensus to guarantee long-term financial stability.

Finally, the Finance Ministry hopes that gradual changes or adjustments can be implemented that will reduce the deficit and, most importantly, ensure payment of current and future pensioners.

Debate on the bill took place this Thursday in the Senate, where Senator Stefan Rasmussen asked to return the project to the commission. With 35 votes in favor, the draft law “Regulating the System for Updating the Retirement Assets of Retired Public Officials and Employees of the Central Administration and Civil Service” was returned to the commission.

Rasmussen said that this would impact the fiscal deficit and in 5 years it would reach more than USD 1,000 million. “This could lead to the box being in a worse position than it is at present and ultimately affecting the wealth of retirees,” he said.

He said it is proposed to have a national commission with different sectors to reform the fund and make it sustainable over time.

For his part, Senator Amado Florentine said that it is a very interesting project and that you want to support it because it will benefit many compatriots; But, on the other hand, it is necessary to be relevant that there are assets that are contributing today and are also expected to be retired, which will depend on the stability of the fund.

He said that the current legislators should not evaluate the project now, but the next government should do so.

Nation World News Desk
Nation World News Desk
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