GOVERNMENT TO COMPENSATE FOR INFLATION RISKS, RA FINANCE MINISTER STATES

news.am
March 31 2010
Armenia

RA Government separated 2010 macroeconomic risks from inflation risks –
the latter were increased by a rise in gas pices, RA Finance Minister
Tigran Davtyan told journalists on Wednesday. The Government also
intends to compensate most vulnerable groups for the inflation risks.

According to him, starting May 1, 2010, the monthly welfare will be
raised by AMD 3,500, and pensions by AMD 2,650. More than 525,000
pensioners are registered in Armenia, and welfare recipients number
110,000. Minster Davtyan noted that the reforms require an additional
AMD 6-6.5bn, but will not be carried out at the expense of other
budget items.

As regards financing sources, Davtyan pointed out the following
three factors: increased tax revenues, improved administration and
reserve funds.