The Fiscal Council recommends that civil servants and police officers pay their personal insurance contributions, like all other working people.
It is also necessary to conduct an analysis of reducing the municipal administration through the merger of municipalities and optimizing the number of police officers, which is growing with a decreasing population.
These are part of the Fiscal Council's recommendations to the caretaker government regarding fiscal policy.
The Fiscal Council proposes that the caretaker government begin preliminary preparations by conducting an analysis of administrative reform to reduce administrative costs.
The Fiscal Council's recommendations state that the current public sector personnel remuneration policy should be reconsidered for several reasons:
- 1) The burden of personnel costs has become too great (nearly 11% of gross domestic product);
- 2) Income growth outpacing inflation stimulates consumption and generates more inflation;
- 3) The growth of wages in the public sector forces employers in the private sector to also increase wages;
- 4) Priority wage increases in certain sectors create a sense of injustice and lead to protests for higher wages in other sectors as well;
- 5) Population decline requires optimization of employees across the entire budget sector;
- 6) The regime regarding the distribution of the insurance burden between employer and employee must be the same for all workers.
The Fiscal Council believes that the state of individual sectors requires a significant set of reforms, including those requiring a change in the operating model.
A good sign would be for the Council of Ministers to begin a preliminary analysis (review of public spending) in several priority areas - administrative reform of budget employees (number, structure and functionality of sectors and individual administrative units), pension reform, healthcare and education.
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