“The reason why the pensions will not rise in 2024 is our [different] spending priorities,” Hovannisian told reporters.
The government set the spending target tax late last year as the total amount of taxes collected by it increased by over 15 percent in 2023 amid continuing robust economic growth in Armenia. Most of the extra spending projected by the 2024 state budget is to be channeled into infrastructure projects.
“If we raise pensions now as much as we all dream of and then suddenly one day we can't pay those pensions, it will be a very big disaster for our country,” said Hovannisian.
The government most recently raised the modest pensions paid to some 500,000 Armenians in June last year. The average monthly pension in the country now stands at about 50,000 drams ($123). It is well below the per-capita minimum cost of living. The so-called “consumer basket” calculated by the Armenian Statistical Committee is worth just over 80,000 drams ($198).
Over the last several years, the pensions have increased by a total of just 6,000 drams per month. These increases have been offset by inflation.