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Bajnai package: To save on public sector, pension

  The biggest savings in the package of additional austerity measures announced by nominee for prime minister Gordon Bajnai a week ago will come from the public sector and measures that affect pensioners, MTI learnt from government sources on Wednesday.

A plan to eliminate compensation for public sector workers’ annual bonuses, scrapped earlier, will save HUF 60 billion in the H2 of 2009 and HUF 120 billion in 2009, MTI learnt. Freezing wages of public sector workers will save HUF 70 billion in 2010.

Moving a pension correction for 2009 to 2010 will save HUF 10 billion, and eliminating the second half of pensioners’ annual bonuses will save HUF 80 billion in 2009. Eliminating the entire annual bonus for pensioners in 2010 will save HUF 160 billion.

Scrapping the pension correction in the same year will save HUF 4-5 billion, and changing the way pensions are indexed -- a measure introduced already by the Gyurcsány government -- will save HUF 70-90 billion.

Suspending home purchase subsidies will save HUF 15 billion in 2009 and HUF 30 billion in 2010. Reducing, then scrapping, gas and district heating price subsidies will save HUF 35 billion in 2009 and HUF 70 billion in 2010.

Reducing disability pay to 60% of wages in 2010 will save HUF 10-20 billion. Freezing family subsidies will save HUF 10 billion in 2010.

Lowering the age of children eligible for family subsidies from 23 to 20 will save HUF 10 billion in 2010. And lowering the maximum child-leave period to two years after birth will save HUF 1-2 billion. (MTI-Econews)