ArmInfo.The government of Armenia in the form of subventions will send 300 million drams to pay salaries to the irrigation system employees. This decision was made at a meeting of the executive body on December 27.
Presenting the draft decision, Acting Minister of Energy Infrastructures and Natural Resources of Armenia Garegin Baghramyan noted that as a result of non-provision of financial resources in 2017, the creditor debt of water companies to 5.7 billion drams was postponed to 2018, which led to a doubling of the debt burden. In 2018, out of 5.74 billion drams of subsidies and 0.75 billion drams provided for the financial rehabilitation of the irrigation system, only 4.1 billion drams were allocated in January of this year to pay off the debts of 2017. Of this amount, 2.39 billion drams were distributed between water users and JRAT in order to partially repay the debt of the previous year. Meanwhile, there are arrears in the payment of taxes, wages, and preparation for spring work. As a result, wage arrears in the amount of 595 million drams were formed in the companies; another 149.3 million drams are tax liabilities of companies, of which 46.1 million drams are banned. Garegin Baghramyan particularly noted that the lion's share of state subsidies provided to compensate for the water tariff is directed at solving problems with payables.
The Acting Minister also announced a decrease in the collection of funds for irrigation water from 64% to 50%. Cardinal reforms, both structural and institutional, will be implemented in the irrigation system. In 2019, continued Garegin Baghramyan, the strategy and approaches to solving the problems existing in the system will be completely revised.
