CBA representatives comment on the pre-election promises

ArmRadio.am
07.05.2007 17:53

The doubling of the state budget of Armenia will result in an increase
of the tax burden for the managing subjects, the Advisor to the
President of the Central Bank of Armenia (CBA) Nerses Yeritsyan stated
at a round-table today, during which the pre-election pledges of a
number of political parties on the doubling of state budget, the
pensions and the minimal salary were being discussed.

According to the Advisor to CBA President, even in the most developed
countries it is impossible to double the given index in the course of
one year. Nerses Yeritsian stated that even having the very ambitious
tax administration, which is implemented in Armenia, the soonest
result can be achieved in the course of 2,5 years.

Every year, when planning the budget, the government also takes into
account the possible shadow formations, which in the course of the
recent years halved, and in 2006 they made 30%, the Advisor to the CBA
President stated.

The member of the CBA Board Vache Gabrielyan stated that the abrupt
increase of the minimal salary or the pensions will result in the
growth of inflation. According to him, having increased the pension
benefits up to 30 thousand AMD, the government will create more
problems and risks for itself, and the benefit of the pensioners will
be insignificant, as the growth of inflation will result in a leap of
the prices.

Commenting on the proposals in making the minimal salary up to 50
thousand AMD, Vache Gabrielyan stated that the decision will only
influence the state employees, and many private employers will have to
cut down their business, or escape from paying the taxes.