PROJECT OF NKR STATE BUDGET 2009 WAS SUBMITTED TO PARLIAMENT
NKR Government Information and
Public Relations Department
December 27, 2008
Today, the NKR Government submitted the project of the State
Budget 2009 of the Republic to the joint session of the NKR
National Assembly’s permanent commissions. The main data included
in the document were announced by the NKR Deputy Minister of Finance
M.Hakobjanyan. It was noted that in 2009 the incomes and expenses are
anticipated to form correspondingly 54 mlrd 52 mln 14.4 thousand and
58 mlrd 542 mln 100 thousand drams. The Budget deficit is anticipated
to form a sum of 4 mlrd 490 mln 85.6 thousand drams.
During the session the NKR Prime Minister delivered a speech,
introduced a number of macro indices and touched upon the pivotal
references holding a place in the financial project.
The NKR Prime Minister underlined that according to the middle-term
expense programme in 2008 the GDP should have formed 87 mlrd drams,
today it is expected to form 86.1 mlrd drams, which has increased
by 14.9 percent against the index of 2007 in case of 5.9 percent of
deflator. According to the middle-term expense programme 103 mlrd
drams and according to the State Budget project equal to 102.1 mlrd
drams was planned for 2009, which corresponds to an increase of 14
percent under the conditions of 4 percent of deflatinn. The average
annual real growth of 14 percent anticipated by the NKR Government
activity’s programme will be retained as well under these economically
hard conditions. The rates of growth will be retained, first of all,
due to agriculture, construction services and other spheres. In 2007
the GDP per head formed 1489 USA dollars, in 2008 it will form 2023,
and in 2009- 2400 dollars. In 2007 the State Budget own incomes against
the GDP formed 20.6 percent, which corresponds to 14.5 mlrd drams,
in 2008 it formed 21.1 percent, corresponding to 18.1 mlrd drams, in
2009 it will form 20.5 percent, correspondingly 20.9 mlrd drams. For
2009 the tax revenues are planned with a decrease of 1.8 mlrd drams
and the expenses with that of 2.3 mlrd drams, as compared with
the middle-term expense programme, which is stipulated by the "Base
Metals", the greatest tax-payer company, and tax payment decrease. In
2007 the tax payments of this company formed more than 40 percent
of the receipts recruited by the State Budget, in 2008 they will
form 20 percent and in 2009 up to 10 percent. Without "Base Metals"
the tax receipts of 2008 will increase by 50 percent against 2007.
In concern with expenses the NKR Prime Minister noted that according
to the Budget project of 2009 the factual expenses will increase by
6.5 mlrd drams in comparison with 2008 taking into account as well
the 600 mln drams’ deficit of receipts from capital services. In 2009
the increase of the salary fund will be equal to 3.2 mlrd drams and it
will form 16.3 mlrd drams. The expenses in the social sphere (pensions,
allowances, indemnities, etc) will increase by 2.2 mlrd drams and will
be equal to a sum of 15.9 mlrd drams. The grants rendered to Community
Budgets will increase by 526 mln drams and will form 7.62 mlrd drams.
Subsidies allotted to community budgets will increase by 526 mn
drams and will form 7.62 mlrd drams. Means rendered to the sphere of
agriculture will increase by 900 mln drams, which will be used for
realization of different agricultural state programmes and in tote
will form 2.35 mlrd drams, credit programmes excluding.
"I want, in particular, note that allotment of 340 mln drams assigned
for protection of monuments and that of 150 mln drams for formation
of the state fisc, by the way, was envisaged for the fist time,
regardless of the fact that, within the year additional means for
forming the state exchequers will also be allotted..
It is foreseen to assign 9.3 mlrd drams, or 1.8 mlrd drams more, to the
sphere of education, from which 6.85 mlrd drams will be destined for
salaries (42 percent of total salaries), which is by 1.45 mlrd drams
more than in 2008. Sums assigned to the sphere of higher education
will increase by 183 mln drams.
According to the State Budget 2009 capital investments will form 12
mlrd drams, which is 1.2 mlrd drams less in comparison with 2008.
The Prime Minister announced that a hypothecary fund is foreseen to be
founded, which will finance more than 3 mlrd drams for implementation
of programmes by securing the process. Moreover, about 3 mlrd drams
of bank resources are foreseen to draw in for realization of capital
construction programmes at state guarantee, as well as 300 mln drams
of draw in means – for supply. "We shall issue governmental bonds
at the rate of 1 mlrd drams, which will be aimed at shortening of
budget deficiency,-A.Haroutyunyan noted. He has qualified the State
Budget 2009, both like social and crisis-proof one, which will allow
providing high tempos of economic growth.
"Taking into consideration total volumes of draw in and off-budget
means and guarantees of the Budget, draw in sums, hypothecary market,
assistance envisaged for development of SME, unprecedented sums
assigned to the sphere of agriculture, growth of capital investments
foreseen by the State Budget and the heavy economic situation we shall
manage to record high tempos of economic development satisfying us
by the end of 2009,- the head of the NKR Government stated.
On delivering the speech, the Prime Minister answered deputies’
questions, gave additional clarifications, in particular, with regard
to the NKR fisc, house construction and other issues.
At the session, the Chairman of the NKR National Assembly Ashot
Ghoulyan spoke with his considerations in concern with the State
Budget. He attached importance to active cooperation between
legislative and executive authorities both in adoption of the document
and its implementation activities.
Discussions of the State Budget project with separate commissions,
according to spheres, will continue in the Parliament, within the
next few days.
The document will be finally adopted by the NA by the end of the
current year.