The increase of pensions and allowances is aimed at compensating the rise in the cost of gas

The social allowances are raised by 15% and pensions by 11% due to the decision of the government adopted at the session held on the March 25.

It is calculated that the allowances will rise by 3500 drams and pensions 2650 drams.

The Minister of Finance Itgran Davtyan and the Minister of Social Affairs and Labour Mkhitar Mnatsakanyan have explained to the journalists today how the government is going to raise the funding and what kind of activities it is going to undertake to carry out the changes.

The Minister of Finance said that all the changes are reflected in the budget and that a working group established by the decision of the Prime Minister calculated and found the necessary resources for the best solution of the task.

There are approximately 110 thousand recipients of the allowances and 520-530 thousand pensioners.

Tigran Davtyan said that the decision was taken with the view of the price rising resulting from the aftermath of the crisis and with the view of the rise in the cost of the consumer gas. The Minister said that the calculation showed that the rise in the cost would have impact equivalent of 2500 drams on an average family. Despite that, they decided to raise the payments by 3500 drams having in mind the overall rise in prices starting from the beginning of the year.

‘The decision of the government is related to the socially poor layers of the society,’ said the Minister Davtyan. ‘The increases were envisaged mainly for 1 million of citizens who are found among the socially most vulnerable layers.’

The increase of pensions and allowances will comprise 6-6.5 billion of drams within the annual budget.

‘These amounts were not envisaged in the budget,’ said Davtyan. The implementation of the decision is not so easy. However, the government and the Ministry of Social Affairs and Labor do everything to mitigate the problems of the aftermath of the crisis that are especially critical for the vulnerable layers of the society.’

The Minister of Finance assured that 6.5 billion of drams will not be paid at the cost of other expenditures of the budget and all other allocations foreseen in the budget will be implemented according to their purposes.

‘The incomes generated from tax collection exceed our expectation for the first three months which is one of our sources,’ said Davtyan. ‘Besides, the administering is now stricter than before and lastly the government has its reserve funds that are meant for unforeseen expenses.’

Davtyan said that the increasing of the pensions is foreseen to be carried out in November because starting from this month the rise of the gas prices is expected.

The Minister Mkhitar Mnatsakanyans also went into details about the decree of the government on the reimbursement of the savings for the war veterans. 120 thousand drams are foreseen for each of the 3700 veterans.

‘It is the duty for all of us which implies the National Assembly, the government and the society,’ said the Minister. ‘It is necessary to do everything that the problem should be solved quickly.’