ARMENIAN BUDGET FOR OFFICIALS’ WELL-BEING

news.am
April 30 2010
Armenia

The RA Ministry of Finance has released a budget report on for the
1st quarter of 2010.

According to the report, the budget revenues totaled 164.1bn AMD (7.2%
more than the government-budgeted amount). On-budget expenditures
totaled 170.1bn AMD (90.5%). As a result the budget deficit proved
to be less than the budgeted deficit.

The on-budget expenditures showed an increase of 10.9% (16.7bn AMD) as
compared with the corresponding period last year. The ministry accounts
for the increase by an increase in expenses due to non-financial
assets ands grants, as well as on the service of foreign debt and
social benefits.

Government-financed employees were unlucky. In the 1st quarter 2010,
salaries, though raised by 6.6%, proved to be 10.7% lower than the
budgeted level. So the relevant expenses totaled 14.8bn AMD (8.7%
of the on-budget expenditures).

The government-financed employees can, however, be grouped as follows:
the fist group has to live on "crumbs from the table," whereas the
second, sitting round the table, enjoy themselves with dainties.

High-ranking and other officials at "elite" government agencies make
full use of the opportunities afforded by the state budget.

Specifically, a total of 1.5bn AMD (almost U.S. $4m) has been budgeted
for the salaries to "people’s deputies" and the RA Parliament staff
this year. The expenses on the Central Bank of Armenia (CBA) (staff,
cars, business tips, etc..) will total 4.7bn AMD (U.S. $12.2m).

Although the number of ministries is not so high as compared with
the Soviet period, numerous new government agencies have been formed
only to prove a heavy burden on the shoestring state budget. The
past decade has seen the formation of numerous institutes for public
administration and economic management.

Among them is the RA Public Services Regulatory Commission, which
recently gained notoriety for approving the ArmRusgasprom Company’s
application for a new natural gas price. Taxpayers, with most of
them being the monopolist’s clients, are actually "sponsoring" the
company and its highly paid staff, while the company’s decisions
run counter to taxpayers’ interests. Moe examples might as well be
cited. Of importance is, however, the following conclusion: despite
their numerous reports, the sinecure organizations are hardly of
benefit to the Armenian economy.

On top of all this, officials promote their well-being by participating
in numerous projects sponsored by international financial agencies
and donor organizations. This is actually the reason for various
strategic programs, like the Poverty Reduction Program.