ArmInfo. The government-promised increase in the minimum wages, pensions and child care allowances will not only fail to resolve social problems, but also increase the already high inflationary pressure, economists Karlen Khachatryan, Vardan Bostanjyan and Tatul Manaseryan told ArmInfo.
Mr Khachatryan, Head of the Chair of Management and Business, Yerevan State University, said that raising minimum wags and pensions amid high inflation rates (10.3% annual inflation) is a good idea. However, adding a few thousand drams to wages and pensions will not resolve the social problems facing Armenia's population. Armenia's financial authorities should think of more effective ways of solving social problems, particularly, by implementing assistance programmes for socially vulnerable sections or by indexing wags and pensions.
"Competent financial management will always allow funds to be found. The authorities proved able to find funds for bonus payments to government officials," the expert said.
"It is one more attempt by the incumbent authorities to win over the voters," Professor Manaseryan said. The promised increase in the minimum wages from AMD 68,000 ($156) to 75,000 ($172) is "not serious, a cosmetic measure." On the other hand, the additional current expenses will prove an unbearable burden for the budget. "That is, the authorities are engaged in self-display again at the taxpayers' expense. And tomorrow we all are going to pay for this increase by seeing rising prices and new taxes," the expert said.
