2005 BUDGET FOR ECONOMIC DEVELOPMENT

Azat Artsakh – Nagorno Karabakh Republic (NKR)
02 Dec 04

The November 29 meeting of the NKR government was devoted to the chief
financial document of the country. Prime Minister Anoushavan Danielian
briefly spoke about the results of the telethon in Los Angeles and
congratulated the participants of the meeting for this unprecedented
success. A. Danielian mentioned that the results were beyond all the
expectations and for the first time more than 11 million US dollars
was donated, which will allow to increase the length of the
`North-South’ highway. The prime minister of NKR thanked all the
participants of the telethon, the Diasporans, the population of
Armenia and Artsakh, the foundation `Hayastan’, all the state and
public organizations which assisted to the campaign of donations, and
stated that owing to unity they will maintain the victory in war in
the country’s economy as well. During the meeting Anoushavan Danielian
stressed the decisive role of NKR president Arkady Ghukassian in the
successful organization of the telethon and the record results. The
NKR minister of finance and economy Spartak Tevossian presented the
project of the NKR State Budget 2005. Analyzing the points included in
the documents the minister stated that the budget of the coming year
will be financed 100 per cent. According to the project, the
consolidated budget income in 2005 will total 7053.4 million drams
(excluding the interstate loan). The 2005 budget will provide for an
expenditure of 14864.3 million drams. Budget deficit will total
14864.3 million drams. Both the income and expenditure of community
budgets will total 1186.0 million drams. Thus, the NKR state budget
income will total 6 billion 460 million drams, and the expenditure
will total 21 billion 325 million drams against 15 billion 249 million
140 thousand of the previous year. The sum of the interstate loan
provided to NKR annually will total 13 billion 636 million 600
thousand drams. Spartak Tevossian pointed out that the anticipated
income will enable significant economic and social growth in almost
all the spheres. The rates of production growth will surpass the level
of the previous years, export of goods will increase. In the sphere of
business the government will continue wide-scale assistance to small
and medium-size business by legislative, tax, loan and economic
undertakings. According to the minister, the budget will have a mainly
social orientation. Special attention will be paid to the spheres of
industry, agriculture, building, social security, health care,
education and culture. In 2005 the salaries of teachers will be raised
by 65 per cent and salaries of health workers by 39 per
cent. Promotion of salaries is expected in the sphere of culture as
well. The budget of the coming year will provide considerable
expenditure for improvement of social conditions of the population
(particularly the pensioners and the disabled). Spartak Tevossian
emphasized that the government will pursue the implementation of
economic reforms directed at creation of jobs, improvement of the
quality of life, implementation of programs of economic and strategic
role for the country. Presenting his observations on the budget of
the year 2005, the prime minister of NKR Anoushavan Danielian stressed
its importance in further economic and social development and
mentioned that it will be directed at activation of the population
economically. The prime minister stated that by maintaining the
existing rates of growth and pursuing the economic and social reforms
it will be possible to achieve tangible progress in the new
year. According to Anoushavan Danielian, the 2005 budget will be a
starting point for implementation of wide-scale programs in the
republic. And maintaining the high rates of economic growth achieved
in 2003-2004 will result in the growth of people’s incomes and thereby
the general improvement of the quality of life of the population. He
mentioned that the state budget of 2005 will enable considerable
development in all the spheres of life, thereby promoting the
country’s economy several steps ahead. The members of government
approved the budget for discussion in the National Assembly. During
the meeting of the government decisions were madeon other questions
most of which referred to tax reforms. The government approved the NKR
bill on `Minimum Monthly Salary’ which maintains the minimum monthly
salary of 15 thousand drams. By another decision of the Executive the
monthly benefit of disabled children will increase from 3 to 6
thousand drams. The government also approved the 2005 social security
plan for the disabled.

AA.
02-12-2004