He believes not everyone, but those who consume less should get compensation for electricity and gas prices.

"We propose to consider adjusting the electricity and gas compensation schemes by providing for a minimum per capita consumption of electricity and gas, i.e. to compensate only up to a certain level of consumption," the central banker told reporters on Friday.

The government should also provide for restrictions on heating compensations as at present it has gone too wide, without differentiating according to people's income, thus inefficiently using the same taxpayers' money, Simkus said.

He also criticized the government's partly politically motivated increase in pensions, which, in his opinion, deviates from the pension indexation system provided for by the law.

The Finance Ministry proposes additional indexation old-age pensions by 5 percent as of June in its adjusted 2022 state budget bill.

Moreover, ministers propose to further expand the circle of those who receive heating compensation and to compensate all residents for the sharp increase in electricity and gas prices as of July.

In total, the updated state budget foresees 973 million euros to mitigate the effects of rising inflation.

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