The Rise in Water Prices Will Lead to Increased Poverty and New Inflation: Fact

According to the newspaper Fact, the Public Services Regulatory Commission is examining "Veolia Water"'s request to raise water tariffs. It is expected that the water price will increase by more than 40 drams.

The President of the Chamber of Auditors, Nairi Sargsyan, discussed the potential effects of the water tariff increase in an interview with Fact: "We are continuously burdening residents with taxes and the inflation of mass-consumed goods. The increase in the water tariff will lead to increased poverty. When people's disposable incomes don't rise but expenses do, the result is an increase in poverty. Moreover, many basic consumer goods have doubled or more, and this is not just based on statistics. The rise in water prices will add to this burden, leading to poverty, which will result in reduced consumption. If the 40 drams could have entered the economic sector, now it will go to cover the increase in water prices. Of course, some taxes will be generated for the budget from there. In this regard, I think there are some internal arrangements made with "Veolia Water." I believe that behind the scenes, the government has reached an agreement with "Veolia Water," allowing the increase in water prices in exchange for certain investments."

Sargsyan also added that the increase in water tariffs will particularly impact businesses where water is a crucial component of cost formation. "Those organizations whose operations are directly related to water consumption will raise their prices. Goods sold in Armenia will become more expensive, and for exported products, either prices will have to rise, making them uncompetitive, or they will be driven out of the market."