CBA CHAIRMAN: ONE OF ARMENIAN GOVERNMENT’S ACHIEVEMENTS OVER PAST 3 YEARS IS PROPORTIONAL TAX COLLECTION

arminfo
2007-11-13 18:23:00

ArmInfo. One of the Armenian government’s achievements over the past
3 years is the proportional tax collection, Chairman of the Central
Bank of Armenia (CBA) Tigran Sargsyan said in parliament, Tuesday,
presenting the CBA’s conclusion on the draft budget 2008.

According to him, earlier taxes were collected during the last
days of each month, which caused tension in the banking system and
hindered the efficient control over the commercial banks’ liquidity
level. Fortunately, this problem was solved over the past three years,
but the problem of proportional expenditure of budget funds still
remains unsolved. In particular, the budget 2007, like the ones of
previous years, has serious divergences. The targeted expenditures
of the first quarter of each year fail to be carried out, they move
from quarter to quarter and finally find themselves in the fourth
quarter. From the viewpoint of inflation, this creates certain
problems, particularly, to introduce a new system of price growth
forecast. In this connection, the CBA draws the government’s attention
to the necessity to solve this problem and create favorable conditions
for market participants. He stressed the fact that the government
presents a budget meeting international statistic standards. In
2007-2008, the CBA concluded a new agreement with the Armenian Ministry
of Finance and Economy, whereby the rules of serving the state budget
are regulated. In particular, the terms of serving budgetary funds,
interest rates for short-term and long-term programs are regulated,
and this will prevent preferential terms for the Armenian government
and exclude divergences in the financial market. "Our goal is to form
an environment which will be predictable for the market participants,"
said T.Sargsyan.