Oppositionist: Armenian authorities need much money to keep power

• Thursday, October 25, 17:34

The structural reforms which the government of Armenia is going to make in the obligatory accumulative pension system, pass the stages of wide
public discussions and political consultations in the civilized countries, as such a step changes much in the life of people, a deputy of the parliament from the opposition Armenian National Congress, Nikol Pashinyan, said in the parliament today.

But in Armenia the government has been taking efforts to give citizens as less information as possible what it has been preparing to its citizens, he said and added that the authorities are trying to pock citizens' pocket once again, this time through application of the obligatory system of accumulative pension. At present we have an income tax and social payments which are separately directed to payment of pensions to the current pensioners. But this system will change for 90%. Starting 1 January 2013 social payments and income tax will become a single tax. According to the draft budget 2013, as a result of application of a single tax, the budget revenues will grow by 21 bln drams ($51 mln). The draft budget 2013 foresees decrease of expenses for social sphere, he said and added that these $51 mln will go the unknown direction. These $51 mln are only for 2013, and staring 1 January
2014, the people which were born after 1 January 1974 will pay not only a single income tax but also a new tax  which is called a payment on the obligatory accumulative pension.

Pashinyan said that these people will pay 5% from their salary to the obligatory accumulative pension. But where these sums will be kept till the pension age of these citizens?- he asked. They will be transferred to the investment pension funds, which before reaching of the pension age by a citizen, will direct the funds to circulation with a purpose to increase them, he said and added that these investment pension funds have not been created yet and will be created in 2013 and citizens will be forced to trust their money to the unknown companies which have no experience in this sphere. Moreover, these funds may bankrupt. In that case, the state budget will guarantee returning of the lost money, he said and reminded that citizens themselves form a state budget. In other words, if the money is lost, we ourselves will pay for that, the oppositionist said and added that such funds will belong to
individual persons which will get a status of legal persons. He also predicted that our money will be de-facto managed by the persons with a family name Sargsyan (president of Armenia -edt) and Minasyan (the president's son-in-law).

"It is already for a long period of time that the economy of Armenia is in stagnation and the power is unable to reanimate it.  And the authorities need money, much money so that to preserve their power, as this power is based only on money. For this reason, they have taken an attempt to pick the people's pocket. Starting 2014, the power will transfer 40 bln drams to its relatives every year. A part of these funds will be created at the expense of
the population and another part - at the expense of budget", - Pashinyan said.