Armenian government intends to raise pensions and allowances to
compensate for growth in gas prices

2010-03-26 16:22:00

ArmInfo. The Armenian government has taken a decision to increase
pensions and allowances to compensate for the growth in natural gas
prices starting April 1, 2010, said Vazgen Khachikyan, Head of State
Service for Social Security.

According to him, starting 1 November 2010 the main amount of pensions
will grow from the current 8 thsd AMD to 10.5 thsd AMD per month, and
the amount of family allowances will be increased from 10 thsd AMD to
12.5 thsd AMD per month. He pointed out that there are 523 thsd
pensioners in Armenia, and 110 thsd families receive family
allowances. The matter concerns the vulnerable layers of population
which need compensation though there are also well-to-do people among
the pensioners, said Khachikyan.

According to experts, the growth in gas prices may lead to additional
growth in expenses on communal services by 2.5-3 thsd AMD monthly per
family, he said. In general, for compensation purposes the government
should raise additional 6- 6.5 bln AMD. The min source of financing is
savings, as well as budget growth, he added.

To recall, starting April 1, 2010, the price of Russian gas for the
Armenian population will grow from 96 thsd AMD per 1 thsd cu m to 132
thsd AMD.