Report

Govt unveils new pension hike formula, to save 0.3-0.6% of GDP

- Govt to hike pensions by ARS 1,500 plus 2.3% in new scheme, flattening the income pyramid
- Those earning the minimum will marginally benefit compared with old pension formula
- But everyone else will lose, likely leading to avalanche of suits against the state
- Savings and income redistribution look too small for the troubles the decision will create
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