THE DEBTS OF THE PREVIOUS PARLIAMENT
Vasak Tarposhyan

Hayots Ashkharh Daily
Sept 4 2007
Armenia

The Executive Of The Budget Discussed

The discussion of the previous year state- budget implementation
report was held in the committees of the National Assembly yesterday.

This report was to be discussed by the previous parliament, during
its spring sitting. But, as the Head of the Committee on Budgetary
Affairs Gagik Minasyan said, because of political processes the
previous parliament didn’t manage to touch upon this document. That
is why the new parliament is discussing the 2006 state budget
implementation report.

Introducing the budget implementation, deputy Minister of Finance
and Economy, General Treasurer Atom Janjughazyan, pointed out that,
as it was during the previous years last year as well, the two-digit
growth has been preserved. GDP growth was 13,3%, mainly conditioned
by the positive development in the constructive and service spheres.

Capital construction of 623 billion drams, at the expense of different
resources, has been implemented, due to which the economic growth of
this sphere has increased by 23%.

The income of the population during this year has increased by
16,7%. The salaries have increased by 26,4%, up to 64 000 drams.

The burden of both internal and external debts has improved. The
profitableness of the state bonds has reduced and the term has been
prolonged. In relation to GDP the burden of the internal debt has
reduced to 18,9%, as compared to the 22,4% of the previous year. At
the end of the year external debt was 1 billion 205 million dollars.

In terms of external debts, Armenia is in the list of the countries
with the smallest amount of debts.

Though during the year the profits of the state budget have increased
by around 30 billion drams, it was not only implemented but also
over-implemented – 21 billion drams more than it has been planned.

"Have any new debts been accumulated in terms of budget expenses?"

They have been implemented by 92%. This index of executive, according
to the General Treasurer is conditioned by the under-implementation
of the expenses and other savings. Another factor is connected with
Linsi foundation. The works envisaged by those means started only at
the end of the year. The agreement was signed with the foundation in
November, after which the construction works started.

That is to say the executive of only one month has been included in
the budget of the previous year.

Introducing the conclusion of the Central Bank regarding the executive
of 2006 state budget President of the Central Bank Tigran Sargsyan
said, "The positive tendencies of the budget implementation have
been preserved."

He said it is particularly noteworthy that high tempo of tax payment
has been recorded during all the months. The indexes predetermined
have been over-implemented, due to which, at the end of the year tax
entry has been 20%.

In parallel to this Central Bank still notices some problems in terms
of the budget implementation. T. Sargsyan especially pointed out the
level of tax-GDP ratio. "Though the tax payment is more then it was
planned, still the growth of tax payment is less than GDP."

This circumstance according to CB President hampers the process of
poverty eradication.

The second important problem that must be settled according to S.

Sargsyan is the high volume cash circulation.