No wage increase for public sector workers next year: Minister
02.11.2011,
21:59
Armenian finance minister Vache Gabrielian said November 1 that although the draft budget for 2012 envisages an increase in social spending, however, public sector wages will not be raised.
YEREVAN, November 2. / ARKA /. Armenian finance minister Vache Gabrielian said November 1 that although the draft budget for 2012 envisages an increase in social spending, however, public sector wages will not be raised.
"We do not believe that in conditions of economic recovery it is correct to rise wages, since that may impede economic growth", he said Tuesday during parliament hearings on 2012 draft budget.
According to the minister, in terms of overcoming poverty the main factors are the level of pensions and social benefits, which are earmarked to increase next year.
"Pensions in the average will amount to 31,500 drams , an increase of about 3000 drams compared to the current 28.4 thousand drams, and the size of social benefits will be increased by 2,700 drams and reach eventually 29,500 drams,’ Gabrielian said.
As for the salaries of civil and public servants, the minister said a package of social benefits will be adopted to improve their welfare and the level of civil servants with low incomes.
A series of inspections conducted by the ministry of labour and social affairs revealed that the number of senior citizens in Armenia decreased by 6,000 people to 514,000 . The average pension in Armenia is about 28,000 drams now.
The 2012 draft budget calls for 910 billion drams in revenues and 1.042.5 trillion drams in spending. The amount of revenue is projected to increase by 6.8% from this year's budget (852.4 billion drams). The spending is expected to grow by 41.5 billion drams. Some 86.1% of the spending (897.8 billion drams) is projected as current expenditure; 13.9% or 144.7 billion drams are projected as net non-financial expenditure. Some 46.2% are projected as social spending (education, health, social security), 19.8% as defense, public order and national security spending, 13.2% are planned for economic boost, 4.5% are projected to pay off Armenia's state debt. Besides, 3.1% of the blueprint budget is projected as official grants to communities and 2% as government reserve fund. -0-
"We do not believe that in conditions of economic recovery it is correct to rise wages, since that may impede economic growth", he said Tuesday during parliament hearings on 2012 draft budget.
According to the minister, in terms of overcoming poverty the main factors are the level of pensions and social benefits, which are earmarked to increase next year.
"Pensions in the average will amount to 31,500 drams , an increase of about 3000 drams compared to the current 28.4 thousand drams, and the size of social benefits will be increased by 2,700 drams and reach eventually 29,500 drams,’ Gabrielian said.
As for the salaries of civil and public servants, the minister said a package of social benefits will be adopted to improve their welfare and the level of civil servants with low incomes.
A series of inspections conducted by the ministry of labour and social affairs revealed that the number of senior citizens in Armenia decreased by 6,000 people to 514,000 . The average pension in Armenia is about 28,000 drams now.
The 2012 draft budget calls for 910 billion drams in revenues and 1.042.5 trillion drams in spending. The amount of revenue is projected to increase by 6.8% from this year's budget (852.4 billion drams). The spending is expected to grow by 41.5 billion drams. Some 86.1% of the spending (897.8 billion drams) is projected as current expenditure; 13.9% or 144.7 billion drams are projected as net non-financial expenditure. Some 46.2% are projected as social spending (education, health, social security), 19.8% as defense, public order and national security spending, 13.2% are planned for economic boost, 4.5% are projected to pay off Armenia's state debt. Besides, 3.1% of the blueprint budget is projected as official grants to communities and 2% as government reserve fund. -0-
