SOCIAL MECHANISM OF STATE BUDGET’S CONTROL IS ABSENT IN ARMENIA, ECONOMIST ANDRANIK TEVANIAN SAYS

Noyan Tapan
Oct 22, 2008

YEREVAN, OCTOBER 22, NOYAN TAPAN. There is no social mechanism for
control of state budgetary expenditures in Armenia, the director of
Politeconom research institute, economist Andranik Tevanian said
at the October 22 press conference. In his words, "we do not know
what expenditures the army makes and how much the police spend on
uniforms." In his opinion, the greater the budget, the worse the
situation is, because more money is collected from economic entities
and then spent without any control – under the cover of increasing
pensions by 5 thousand drams.

The Central Bank of Armenia constantly raises the refinancing rate,
which, according to A. Tevanian, means a policy of expensive money. "On
the one hand the state conducts a strict fiscal policy, on the other
hand it tightens the monetary policy," he said.