MAINTAIN RATE OF ECONOMIC GROWTH

NKR Government Information and
Public Relations Department
April 21, 2009

At the NKR Government Session

Today, the regular session of the NKR Government conducted by the
Prime Minister Ara Haroutyunyan has taken place.

>From a number of returns foreseen by the agenda, the Executive first
touched upon implementation of the NKR State Budget 2008. Reporting
on recorded budgetary proceedings of the previous year, the Vice
Prime Minister, Minister of Finance Spartak Tevosyan announced main
socio-economic figures and facts characterizing the year. According to
his presentation, in spite of the influence of world-wide financial and
economic crisis of the end of 2008, the Republic’s economic increase
formed 14.3 %. By rated expression the GDP (Great Domestic Product)
formed 87.1 mlrd drams (70.8 mlrd drams in 2007). The per capita GDP
formed 623.1 thousand drams or 20036.5 USD against 510.0 thousand
drams or 1489.5 USD in previous year.

In 2008 volume of industrial production formed more than 25.3 mlrd
drams factually increasing by 11.6 % in comparison with 2007. The
gross output of agriculture formed 31.2 mlrd drams increasing by
25.4% if compared with 2007. Volume of capital construction carried
out at the expense of all sources financing formed 25.8 mlrd drams,
which in comparison with the previous year has increased by 24.2%
or 5.0 mlrd drams.

Volume of foreign trade turnover in 2008 formed 305.063 mln USD
increasing by 10.0% in comparison with 2007, including increase of
import volumes by 22.0 %, which form 249.974 mln dollars, and export
volumes decreasing by 24.1 % forming 55.1 mln dollars.

The size of an average monthly salary of a working man in 2008 formed
80480 drams, in comparison with 2007 the nominal increase formed 17.3 %
and the factual one 6.1 %.

Parallel to economic growth and employment the population’s monetary
incomes and expenses have also increased. In comparison with 2007
the population’s monetary incomes in 2008 have increased by 16.9 %
forming 80.8 mlrd drams, and monetary expenses have increased by 18.3
percent forming 79.1 mlrd drams.

According to brief information, private incomes of the NKR State
Budget in 2008 formed 199911733.8 thousand drams, implementing the
index of anticipated annual programme by 99.6 %In comparison with
2007 incomes of the State Budget last year increased by 32.3 % or
4863350.7 thousand drams. At the expense of state means expenses at
about 50074650.5 thousand drams were carried out, which formed 95.0 %
of the envisaged programme.

The other presented numerous figures affirm that the NKR State Budget
2008 was implemented the way it was presumed. Speaking about that
A.Haroutyunyan at the same time clarified that nonfulfilment of the
expenses in some articles were not preconditioned by the deficiency
of finance, the Government had performed some cutting down (prune
the budget) reasoning from (on the assumption of) financial and
economic practicability. The Prime Minister emphasized that last
year all envisaged social programmes were realized, some of them
being included into pre-election programme of the NKR President for
the first time were put into practice. Importance was attached to
maintenance of recorded index of VAT within the year In this view
A.Haroutyunyan noted that the crises has no profound negative impact
upon general socio-economic developments in the Republic, though in
the first quarter of 2009 undesirable consequences had already been
recorded. The situation dictates to make expenses from the State Budget
utterly economically and cautiously. State Budget means, first of all,
must be directed at arrangements, which are aimed at creation of new
work places and economic rates growth.

The head of the Government underlined that it is essential to
accumulate funds for resisting new attacks of difficulties caused
by financial crisis the chances of which are still good. Confidence
was expressed that this year as well all social payments will be
performed. Making voluminous investments will continue, in particular,
in the spheres of agriculture and capital construction. At present
the main goal of the Government is to fight for considerable economic
growth rate and in the nearest future to achieve the internationally
acknowledged level of GDP per head.

At the session the Executive discussed and approved draft laws on
making changes and additions in two laws of the NKR. The first was
concerning changes in the essence of the NKR law "On Procurement" which
is aimed at elimination of omissions and ungrounded expenses. The
Prime Minister A. Haroutyunyan considered the facts of purchasing
goods at prices higher than market ones unforgivable. He recommended
to reconsider the procedure of rivalry in procurement to make it
profitable. It is high time to have an efficient procurement system,
the head of the Government noted.

By one another draft law additions and changes to the NKR law "On
Obligatory Social Insurance in Cases of Temporarily Disablement"
were proposed. The two draft laws approved by the Executive will be
submitted to the discussion of the NA of the NKR.

The accounts of the Ministries of Economic Development, Healthcare,
Education and Science on their activity of 2008 were considered at the
Government session. According to the presentation by Benik Babayan,
Minister of Economic Development, last year the economic policy
carried out by the department under his authority was directed to
the formation of stably developing and competitive economy through
spurring diversification and the increase of productivity. With this
aim the Ministry drafted 129 Government decrees and 12 law projects
and submitted them to the discussion of the Executive.

Touching upon the issues of economic development Prime Minister
A.Haroutyunyan noted that it is necessary to draft and implement a
programme of economic macro stability, to secure the proportionate
territorial development of the Republic. The Prime Minister drew the
attention of the Government to the fact that GDP in its dynamics is
quite risky and maximal private funds are to be in possession so that
to be insured against economic warfares.

The changes in the sphere of healthcare were reported about by Armen
Khachatryan, Minister of Healthcare. He particularly noted that in the
accounting year special attention was paid to the issues of health
units’ proportionate development in the regions of the Republic,
prophylaxis, mother and child healthcare, to those of promoting the
level of childbirth assistance, quality and accessibility of medical
assistance, technical re-equipment of medical posts. According to the
Minister, the reconstruction and re-equipment of "Arevik" children’s
hospital, acquisition of a mobile reanimation saturated with modern
equipments for the ambulance service, provision of free medicine for
the patients treated for hemodialysis, the first vaccinations against
hepatite A in the Republic and other activities can be considered
among the significant achievements of the healthcare system.

In his account on the existent problems and works implemented in the
sphere of education and science in 2008 Vladik Khachatryan noted that
at present comprehensive education is carried out in 230 state schools
of the Republic among them 164 secondary, 50 eight-year and 16 primary
schools, as well as in the Artsakh State University, in the military
college adjunct to the NKR Defence Ministry and in other education
centres. The state policy implemented in the sphere of comprehensive
education was aimed at securing the obligatory eight-year education
and the general secondary education of learners which proceeds through
the gradual implementation of improvements.

Last year a progress was particularly recorded in the sphere of
school building. 63 comprehensive school buildings were reconstructed,
58 new schools were built on charity means and State Budget funds.

The Executive introduced changes in the temporary outlines of use of
lands of Askeran region’s Sghnakh and Ivanyan communities. Separate
territories in the category of communal property were turned to lands
of social construction significance.

At the session the Executive affirmed the regulations on tutorship,
established the "Mijaget" CSJO on the basis of "Dizak" newspaper of
Hadrout regional administration.

The Executive introduced changes in a number of formerly adopted
decrees. One of them refers to the new order of passenger conveyance
by taxis, which, with the corresponding additions, will come into
effect since January 1, 2010.

By the NKR Government decree licenses for implementing activities in
the sphere of drugs and tranquilizers were rendered to the "Pharmatsia"
CSJO and the "Tatev-Vika" LTD.

* * *

After the completion of the session, Prime Minister A.Haroutyunyan
convoked a conference on agricultural issues with the Minister of
Agriculture and heads of regional administrations of the Republic. The
Prime Minister warned the participants against the troublesome
situation created in a number of arable lands of the Republic
connected with the reproduction of rodents. The situation in Hadrout
and Martouni causes special anxiety. A.Haroutyunyan instructed to
create an appropriate staff at the head of the Minister of Agriculture
Armo Tsatryan. The staff is obliged to begin immediate rodent control
and to prevent the spoilage of the expected crop. The Prime Minister
expressed dissatisfaction towards the so far implemented arrangements
and ordered those present to direct all the resources under their
disposal against this agricultural disaster, the state will provide
comprehensive support to the process.

The issues concerning the current spring sowing works, repayment of
overdue credits were touched upon at the conference as well. In this
connection the Head of the Government assigned appropriate tasks.

From: Emil Lazarian | Ararat NewsPress