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The government should restore pensions as planned to levels last reached before the global financial crisis and raise the minimum wage in 2012 as the economy expands, Grybauskaite said to another radio station, Lieutvos Radijas, last week.
The IMF estimates that the pension increase will boost spending by 0.6 percent of GDP. The government said today it plans to keep a freeze on public workers’ salaries next year after an 8 percent cut in 2009. The economy expanded 6.9 percent in the first quarter.
Grybauskaite told the government to resist turning the 2012 budget plan into a pre-election spending campaign.
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