The 2011 draft budget is an unequivocally social one, Armenian Prime Minister Tigran Sargsyan stated at today’s discussions of the draft budget by the parliamentary commissions. Earlier, however, Armenian Minister of Finance Tigran Davtyan described the budget as a “stable development budget.”

The draft budget provides for massive social expenditures – education, social security and healthcare. Minister Davtyan pointed out that the on-budget expenditures will be increased by 63 billion AMD (U.S. $170 million), with the lion’s share to be directed to the social and cultural sectors. Social expenditures will total 450 billion AMD (U.S. $1.2 billion) or 45% of the planned social and cultural expenditures. Social security expenditures are to reach 265 billion AMD (U.S. $730 million) – 27% of the planned on-budget expenditures. Of this amount, a total of 200 billion (U.S. $550 million) will be directed to pensions – an unprecedented amount. The Government will allocate an additional 26 billion (U.S. $71 million) for pensions and allowances. The Government plans a 10% increase in pensions and a 15% increase in allowances as a compensation for a sharp rise in gas prices to socially vulnerable sections.