The new government, according to its new program, is going to increase pensions by 60% starting from January 1, 2008. It is clear that this promise is a part of the pre-election campaign, but it is not clear how the budget is going to provide that sum. In addition, whereas the parliamentary opposition does not discuss that issue from its constructive positions, the representatives of international financial organizations understand it very well. Particularly, the head of the International Monetary Foundation mission in Armenia, Martha Castelo-Branco, said the following yesterday concerning that issue: “In order for the pension reforms to be done successfully, as a result of which living conditions will become better and the connection between the amounts of money to be divided up and what pensions will receive will be more realistic, there need to be obligatory fiscal expenses, which should be realistically estimated in consideration of other governmental factors,” said Branco, thus diplomatically hinting that the government is not able to keep its promise and increase the pension payments.
