Social Situation is Complicating: Pashinyan States Prices of Several Essential Goods Will Not Rise, We Also Have Reductions

During today’s government meeting on March 24, Prime Minister Nikol Pashinyan addressed the citizens of Armenia, stating that the social situation in the country is deteriorating.

“But we must be aware that the whole world is in the same situation, experiencing an unprecedented rise in inflation, and you can know the reasons for it by checking the content of news channels at any time. In fact, Armenia is in a better situation in this regard compared to many other countries. The government’s policy in this aspect was evident in 2019 when food prices were rising worldwide, yet Armenia was one of the few countries where the opposite was happening—food prices were falling. This was because we eliminated artificial monopolies, and today Armenia is a free country in terms of imports and exports, and as a result of the measures taken, the prices of several important goods will not rise in Armenia and, in some cases, we have reductions. I hope that we will also see reductions in the prices of other products in the near future,” Pashinyan stated.

He emphasized their understanding of the need to implement policies that mitigate social issues, doing so as much as the country’s budget allows, which is formed from the taxes contributed by everyone. “As for how we collect taxes, the data from 2021, which was the most critical year for us, shows that the tax revenues of the state budget exceeded the projections by about 147 billion drams. If we consider the additional revenues obtained without legislative changes, that amounts to around 110 billion drams. Overall, since 2018, our budget’s tax revenues have increased by approximately 35 percent, as I had promised during our non-violent, velvet, popular revolution,” he stated.

“Of course, there are speculations and sometimes criticisms regarding how we increase the salaries of law enforcement staff and are not adequately raising pensions. Yes, but two things must be considered. Firstly, increasing the salary for 500, 5,000, or even 20,000 people is quite different from raising the pensions for 550,000 people or the salaries for 600,000 individuals. These are absolutely different budgetary expenses, and those expenses are not one-off; they must be sustained permanently. We are, of course, doing everything possible to fulfill our electoral promises, and even outside of electoral considerations, we are taking vital decisions as soon as possible,” he noted.

Pashinyan explained that increasing salaries in the law enforcement and judiciary systems primarily benefits ordinary citizens since law enforcement officials directly deal with the fates and rights of these individuals, and the quality of these systems' operation is also crucial for the state of the country’s economy and the rule of law. “In any case, dear compatriots, you should know undoubtedly that, as in the past, today more than ever, all your pains are in our hearts, all your needs are in our minds, and all your dreams are in our souls,” he emphasized.

“Regarding the economy, I want to talk about some optimistic news. We must note that we have a good foundation for maintaining economic activity. During the first 20 days of March, for instance, the number of transactions recorded by cash registers has increased by about 510,000 compared to the same period last year, while the turnover has increased by more than 60 billion drams, which is over 120 million dollars,” he said.

“This is, of course, not a fundamental indicator, but it is a positive signal associated with the significant influx of people into the Republic of Armenia in 2022, which will create quite favorable economic effects. It is also significant that in February, we recorded a record number of jobs—646,077 for the month of February, which is an increase of 10.3 percent compared to 2021 and 12.7 percent compared to 2019. The same applies to the average salary; the average salary recorded for employees in February 2022 was 223,235 drams, which is 9 percent higher than in 2021 and 25.3 percent higher than in February 2019. I want to remind you that 2019 was our best year, and comparisons are made with that year,” he added.

“However, I must also say that, unfortunately, the socio-economic situation is not the greatest challenge our country faces,” Pashinyan mentioned. He stated that they are currently at a historically crucial point in the Third Republic's history, one that the Armenian state has encountered before. “In order to reach our desired resolution from this historical point, we need unprecedented flexibility and a completely non-emotional state. We need new ways of thinking. We must navigate our ship, which is caught in this stormy geopolitical ocean, to a peaceful harbor. And I am confident that we will do this, and it is perhaps our historical mission,” the Prime Minister concluded.