WHERE 5 BILLION DRAMS OF RESERVE FUND DISAPPEARED?
Aram Zakaryan

Lragir.am
16 June 06

In 2005, 21.1 billion drams of the reserve fund of the government of
Armenia was spent totally. However, 4.8 billion drams was allocated
by over 100 government decisions, and the target is often unknown. In
other words, it was spent for aims that only the government of Armenia
knows. The society is unaware, the taxpayers either.

First it should be noted that the 363.7 million drams spent by two
confidential decisions in January and September 2005 is not included
in this 4.8 billion. We will simply add that the money was spent for
the sake of national security. Whereas the other cases are beyond
logic because everyone is supposed to learn about every dram that
is spent. It is unclear, for instance, what happened to the 8.168
million dollars allocated by the 1064-A decision of July 28, 2005 or
36.2 million allocated by 1038-A decision of July 21. Although the
official website of Armenia the government offers detailed information
about government decisions, meetings of the prime minister and other
activities of the government, there is not a hint of decisions on
allocating money without a specified target. It is notable that the
government adopted most of these decisions in the second half of the
year. The address of some decisions is specified but the purpose
is unclear. All the government agencies, including the president
administration, the government administration, the National Assembly,
courts of law, ministries and the Public Television, received sums
without a specified purpose. In particular, the Ministry of Foreign
Affairs of Armenia received 748 million drams, the Ministry of
Agriculture 300 million, the City Hall 269, the Ministry of Finance
140 million drams.

Another notable observation. On October 13, for instance, the Ministry
of Defense received 56.8 million and 35.6 million drams from the
government reserve fund on two different decisions, 1638-A asnd
1639-A. Hence, the purposes were apparently so different that the
necessity to pass two different decisions occurred. It is not clear,
however, what the purposes were. Without an address and a purpose,
the largest sum was allocated on October 20, on the decision 1742-A
of October 20, with a simple formulation "On Allocating Funds from
the State Budget of the Repubic of Armenia."

However, the odyssey of the reserve fund of the government of the
Republic of Armenia does not end thus. Though 190 million drams
was allocated from the state budget for local elections, another 15
million drams was allocated from the reserve fund on 11 decisions for
scheduled local elections in some rural communities and towns. It is
not clear why this 15 million was not simply added to 190 million.

Instead it is clear that the early elections were to be funded from
the reserve fund: 24 decisions and 10.9 million drams.

This is not the end, however. The indices of performance of this or
that expenditure are rounded. And if 0.5 percent seems so little that
can be overlooked, in absolute numbers it is not. For instance, by
the decision on funding the preparation and conduct of the referendum
on constitutional reform on November 27, 2005, 283.449 million drams
was allocated, but 282.786 million drams was transferred. 1 percent
was overlooked, and performance was assessed at 100 percent, although
in absolute numbers 663 thousand drams were not transferred. 21.187
billion out of the 21.206 billion drams of the reserve fund was
spent. Again 100 percent performance and … 18.597 million missing.

Nobody knows where this 18 million is except those who know where
that 4.8 billion is. The public is unaware of the way it has passed.

Crime or not, it is something that should be decided by law-enforcement
agencies. In the meantime, economists say with a budget deficit it
would be logical if the reserve fund of the government were spent in
cooperation with the parliament.