ArmInfo. Starting April 1, 2026, the pensions of 623,353 citizens in Armenia will increase by 10,000 drams or more. As for the remaining 39,594 people, their pensions will increase by approximately 8,500 drams.
"These are mainly individuals receiving military pensions, whose average pension is currently 95,000 drams," as stated by Minister of Labor and Social Affairs Arsen Torosyan stated at a cabinet meeting on March 5, when presenting the corresponding draft resolution. The Ministry of Finance deemed this increase quite risky.
"Given the political and social resonance of the presented proposal, from a fiscal sustainability perspective, we deem it necessary to note that this would result in a significant increase in current expenditures for 2026 and subsequent years, leading to a significant inertial increase in social expenditures in the base budget in subsequent years and significantly limit the RA government's ability to allocate funds to other areas.
When considering the existing fiscal constraints, and the significant fiscal pressure on current expenditures arising from the Universal Health Insurance system, along with the increasing expenditure requirements ar in many other areas for 2026 and beyond, the presented proposal appears to carry considerable risks. Therefore, taking into account the existing issues, budgetary constraints, and the fact that the sources of funding for the anticipated financial needs have not been clarified, we propose submitting proposals to optimize other programs in the sector. The savings will allow for the financing of additional expenses, as well as prioritizing savings and additional resources received during the year to fulfill the obligations already assumed and to refrain from initiatives that create new obligations in the future," this is how the financial department assesses this resolution.
