NKR Expects 13% Economic Growth In 2010

NKR EXPECTS 13% ECONOMIC GROWTH IN 2010

/PanARMENIAN.Net/
02.12.2009 11:15 GMT+04:00

/PanARMENIAN.Net/ President of the Nagorno Karabakh Republic Bako
Sahakyan delivered a speech on the 2010 draft budget at the meeting
of the NKR Cabinet of Ministers on November 30.

The President said,

"Dear attendees, Today’s meeting of the Cabinet is dedicated to the
Nagorno Karabakh Republic’s 2010 draft budget.

Before going to the main topic I would like to note that economic
policy carried out by the government has partially neutralized the
impact of the global economic crisis. As a result in the current year
economic growth in our country is forecast to be more than 13 percent.

Our success is based both on the work of the government and on the
prudent stance of our people who have not pressed the panic button
unreasonably deteriorating the situation.

However, I am far from believing that the crisis has finally
retreated. In 2010 we should be also ready for possible unfavorable
developments.

I think that the most important subject of the 2010 draft budget
discussions should be the adoption of a balanced and feasible state
budget in a situation of global economic crisis following which the
Cabinet of Ministers waging effective budgetary policy will guarantee
its performance.

The 2010 state budget must secure optimal realization of the following
two main goals. First of all, it is necessary spend state resources
effectively and sparingly, which is of special importance in a
situation of limited state revenues and the need of carry out the
planned programs in corpore and at a stated time.

Secondly, the reduction of government spending should not hinder
economic relations and growth in the country. On the contrary,
expenditures of the state budget being incomes of population, state
investments should increase gross demand thus stimulating economic
growth in the republic.

I would like to make several comments about the proposed state budget
and its performance, which the Cabinet must take into consideration.

– The most vulnerable strata of population should be protected from
the negative external influence to the highest possible degree.

Allowances and pensions of teachers, medical workers and all salaries
allocated from the state budget should be kept at the increased level
of 2009 and paid without any delays.

– I request the Cabinet to keep in the spotlight problems the families
of perished freedom fighters, missing in action and disable face,
keep implementing projects providing social security to them, and
from January 2010 set a monthly allowance for families with two or
more members perished, 15 thousand drams for every perished individual.

– Expenditures for maintaining state structures should be carried
out in a very sparing manner. Budgetary allocations for property
purchase should be made only in exceptional cases and for specialized
machinery. Utilization of budgetary means should be carried out with
high degree of financial discipline.

– Economic policy should be waged in a way to exclude drastic upsurges
of consumer prices, which is a serious social factor too.

– It is necessary continue steps to create equal and favorable field
for business in a consecutive manner. Measures carried out for this
very purpose should be directed towards simplifying and improving tax
administration, formation of favorable investment climate, expanding
assistance to small and medium size entrepreneurship.

I would like to use the opportunity of the 2010 draft budget discussion
and touch upon some important issues.

1. The formation of this budget is taking place in a time when
the activity and behavior of any state structure or official,
responsibility towards his duties have a significant importance for
solving issues and problems our state and economy face.

2. I would like to call the attention of all interested structures,
first of all, the ministries of health, science and education on
quality of child care in preschool institutions. Daily supervision
should be exercised over the quality of food, living and sanitary
conditions and their compliance with the existing norms.

3. There are numerous problems with usage and protection of land
as well as in exercising control over these processes, which have
become a serious hindrance for economic development including for the
formation and replenishment of budget. The large scale activities
of the Cabinet and law enforcement organs to solve these issues,
particularly to liquidate illegal land use should continue and be
brought to a logical end.

4. The need of optimizing state agencies has been underlined many
times. However, presently we have around 140 state non-profit
organizations, which are financed by the state budget. Their number
is increasing and in the current year nine new such organizations
were registered. I request the government to study the situation and
make proposals to carry out serious reforms in this sphere.

Dear attendees,

The 2010 draft state budget of the Nagorno Karabakh Republic that
is submitted for consideration of the government if adopted, will
allow solving issued of socioeconomic development and securing normal
life for our country. It has an emphasized social orientation and
will contribute to amelioration of living conditions and rising life
standards of our people.

The draft budget will be soon submitted to the National Assembly. I
am confident that there will be constructive, interesting and thorough
discussions over this document of great importance, the implementation
of which requires intense and painstaking work from everybody."