ARFD Asserts That It Is Possible To Raise Pensions Three Times And T

ARFD ASSERTS THAT IT IS POSSIBLE TO RAISE PENSIONS THREE TIMES AND TO FIX MINIMUM SALARY IN AMOUNT OF 50 THOUSAND DRAMS

Noyan Tapan
May 02 2007

YEREVAN, MAY 2, NOYAN TAPAN. The preelection promise of some political
forces, including ARFD, of increasing pensions three times and fixing
minimum salary in the amount of 50 thousand drams is not realistic,
Vazgen Khachikian, Chairman of RA Social Insurance State Fund, member
of Republican Party of Armenia, stated at the May 2 press conference
calling political forces for not giving promises they will not be
able to fulfil.

In his words, for pensions’ increasing three times the number of
employees should increase three times or the average salary should
increase three times, which in both cases is impossible. Besides,
in V. Khachikian’s words, in case of fixing minimum salary in the
amount of 50 thousand drams many jobs will be closed. "Especially
institutions of communal significance, including kindergartens,
will not be able to pay such sums," he said.

V. Khachikian said that all provisions of RPA’s 2003 preelection
program, including social and economic ones, have been fulfilled. And
V. Khachikian considered realistic the provisions of this year’s
preelection program, in particular, raising the pension 2.5 times
within the coming five years. In his words, this is possible by raising
salary fund parallel with growth of economy and GDP, by creation of
new jobs, bringing shady employment to tax field.

Artsvik Minasian, RA Deputy Minister of Labor and Social Issues,
member of commission working out ARFD’s preelectoral platform,
said that raising pensions and the minimum salary three times are
realistic. In Deputy Minister’s words, nothing stoppes us from fixing
minimum salary in the country in the amount of 50 thousand drams
starting 2008, which will make 11-12 bln drams in the state budget.

According to ARFD’s preelection program, social expenditures in 2008
RA state budget can make 800 mln USD (they made 600 mln USD in 2007),
in 2009 1.2 bln USD and in 2010 1.6 bln USD. In 2010 the state budget
will make 4.1 bln USD and GDP 18.7 bln USD. "In these conditions
we can raise the pensions not only three times, but even more,"
A. Minasian added.