NKR STATE BUDGET PERFORMANCE IN 2004
Azat Artsakh – Nagorno Karabakh Republic [NKR]
06 May 05
In 2004 NKR budget receipts totaled 4590.2 million drams surpassing
the annual plan for 2004 by 27.5 per cent. The increase in budget
receipts was determined by returns on taxes, state tax and capital
transactions. State budget outlays in 2004 totaled 14504.7 million
drams (excluding the funds of tax agencies for encouragement), which
is 94.4 per cent of the annual plan maintained in accordance with the
legislation. State budget receipts grew by 44.8 per cent or 1420.1
million drams against the year 2003. Tax collections increased by
963.7 million, returns on state tax grew by 111.1 million, other
sources of income by 125.4 million, capital transactions by 219.9
million drams In 2004 tax collections comprised 68.8 per cent of the
NKR state budget re=. ceipts. Return on state tax comprised 6.6 per
cent of the state budget recei= pts, other sources of income 13.2 per
cent, returns on capital transactions=20= 11.4 per cent. The ratio of
return on tax (including the state tax) to the G= DP is 8.1 per cent.
State budget receipts from tax collections totaled 3156.= 3 million
drams which is 130.9 per cent of the annual plan. It should be not=
ed that return on tax surpassed the level of the annual plan by about
745.3=20= million drams or 30.9 per cent. It increased by 44 per cent
since the year 2= 003. It is noteworthy that a high rate of growth
was reported in all tax rev= enues. Against 45.6 per cent of 2003 VAT
revenues comprised 43.7 per cent of= the overall tax revenues in 2004
totaling 1379.4 million drams. In 2004 VAT= revenues grew by 31.4 per
cent or 378.8 million drams against 2003. Excise=20= tax revenues
totaled about 302.4 million which comprises 9.6 per cent of ove= rall
tax revenues against 8.6 per cent of the previous year, increasing by
1= 13 million drams or 59.7 per cent against the previous year. This
growth is=20= determined by the increase in sales of taxable products
on the home and fore= ign markets. Income tax collection totaled 556
million drams increasing by 2= 6.4 per cent against the previous
year. The main source of the increase was=20= the incomes from
salaries. Profit tax revenues totaled 317.6 million drams,=20=
comprising 10.1 per cent of overall tax revenues. Against the year
2003 prof= it tax revenues increased by 35.1 per cent or 81.7 million
drams. Return on=20= stable payments of taxable businesses totaled
148.4 million drams comprising= 4.7 per cent of overall return on
tax. Return on stable payments increased=20= by 19.7 per cent or 32.6
million drams against 2003. Return on tax on trade=20= totaled about
214.2 million increasing by 35.6 per cent or 69.9 million agai= nst
2003. State tax totaled 304.9 million drams surpassing the annual
plan b= y 45.2 per cent. Against 2003 state tax collections increased
by 57.3 per ce= nt or 111.1 million drams, which is mainly determined
by the increased payme= nts of fees for license, documents given to
natural persons, state registrat= ion. Budget receipts from other
sources totaled about 607.9 million drams ri= sing by 26 per cent or
125.4 million drams against 2003. Budget receipts fro= m capital
transactions in 2003 totaled 521.1 million, of which 423.8 million=
from privatization of state property, 97.3 million from disposal of
the fun= ds considered the property of the government. Capital
receipts increased 1.7= times or by 219.8 million drams against 2003.
In 2004 NKR budget outlays to= taled 14504.6 million drams with 84.2
per cent of current expenditure and 15= 8 per cent of capital
expenditure. In 2004 budget outlays increased by 18 p=. er cent or
2208.3 million drams against 2003, which is mainly determined by=20=
the increase in salaries, social security payments, capital outlays
and expe= nditure on services. The annual plan of expenditure was
implemented by 94.4=20= per cent. Over 12212 million drams was
provided from the state budget of 200= 4 for current expenditure
(93.7 per cent of the annual plan). Salaries of ci= vil servants
totaling 3018.8 million drams comprise 24.7 per cent of current=
expenses. Expenditure on salaries increased 1.3 times or by 730.7
million d= rams against 2003. This increase was determined by the
rise in the salaries=20= of teachers and medical workers. In 2004
subsidizing totaled 1503.7 million=20= drams, which is 12.3 per cent
of current spending and 99.6 per cent of the a= nnual plan. The level
of subsidies rose by 15.6 per cent or 179.9 million dr= ams since
2003, which is mainly determined by the increase in culture, agric=
ulture and health subsidizing. In 2004 social security payments and
allowanc= es totaling 24187.4 million drams comprised 19.8 per cent
of budget expenses= , and 97.3 per cent of the annual plan (excluding
the funds of tax agencies=20= for business encouragement). Of this
440.1 million was spent on social secur= ity, 594.9 million on
pensions, and 534.3 million on subsidizing of communit= ies. With
20.7 per cent of increase in current spending expenditure on socia= l
security payments increased by 29.9 per cent, which shows that the
state b= udget of 2004 was oriented towards social security. Almost
all kinds of soci= al security payments rose against 2003. In 2004
5269.1 million drams was spe= nt from the state budget on buying
goods and services totaling 43.1 per cent= of current expenditure and
92.4 per cent of the annual plan. This index inc= reased by 623.7
million drams or 13.4 per cent against 2003. In 2004 under p=
rovisions of the state budget capital expenditure totaled 2292.6
million dra= ms, comprising 99.1 per cent of the annual plan. Capital
expenditure increas= ed by 5.4 per cent or 117.5 million drams
against 2003. Accrued debt was pre= vented.
AA.
06-05-2005
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