Tuesday, Armenian Government Reports Further Rise In Tax Revenue • Artak Khulian Armenia -- Davit Ananian, head of the State Revenue Committee, arrives for a news conference in Yerevan, July 9, 2019. The Armenian government’s tax revenues soared by about 25 percent in the first half of this year, the head of the State Revenue Committee (SRC), Davit Ananian, said on Tuesday. Figures released by Ananian show that the sharp rise was made possible by about 63 billion drams ($132 million) in additional taxes and other duties collected by the SRC in this period. Armenia’s 2019 state budget calls for a total of almost 651 billion drams in first-half tax revenues, up from 572 billion drams in the year-earlier period. The SRC surpassed that target, collecting over 713 billion drams ($1.5 billion), according to Ananian. Ananian cautioned that his agency’s performance will not necessarily be just as strong in the second half of this year. Prime Minister Nikol Pashinian promised an additional budgetary revenue of at least 62 billion drams at a May 8 news conference in Yerevan. Meeting with foreign diplomats in Yerevan two weeks later, Pashinian said his government has already raised that sum thanks to “a little trick.” He did not elaborate. Ananian likewise did not specify factors behind the surplus when he met with the press. The SRC chief reported only a 21 percent rise in the monetary value of cash receipts issued by Armenian shops, restaurants and other businesses in January-June 2019. Pashinian regularly urges Armenians to demand such receipts when buying goods and services in order to prevent businesses from evading taxes. He has said that this is essential for the success of an “economic revolution” promised by him. Pashinian’s government pledged to crack down on widespread tax fraud when it took office following the April-May 2018 “Velvet Revolution.” Armenia’s tax revenues rose by over 14 percent, to 1.3 trillion drams ($2.7 billion), last year. They were projected to reach 1.4 trillion drams in 2019. Pashinian said in May that most of the extra taxes collected by the authorities will be spent on road construction. They have also allowed 10 percent increases in the salaries of schoolteachers and military personnel. In Ananian’s words, the improved fiscal performance is also enabling the government to finance its recent decision to make healthcare free for all citizens aged under 18. Iran Looks To Boost Gas Supplies To Armenia • Sargis Harutyunyan Iran -- President Hassan Rouhani (R) meets with Armenia's Deputy Prime Minister Mher Grigorian, Tehran, July 3, 2019. The Armenian and Iranian governments are exploring the possibility of expanding a swap arrangement allowing Armenia to import Iranian natural gas, Deputy Prime Minister Mher Grigorian said on Tuesday. Under the commercial scheme launched a decade ago, Iran has supplied up to 500 million cubic meters of gas to Armenia annually. The latter pays for it with electricity delivered to the Islamic Republic. The rest of Armenia’s gas imports totaling roughly 2 billion cubic meters per annum come from Russia. According to the current and former Armenian governments, Russian gas has been cheaper, in monetary terms, for the South Caucasus state than Iranian gas. Speaking after talks with Grigorian held in Tehran last week, Iranian Energy Minister Reza Ardakanian said that his country is ready to increase the gas supplies and also accept other Armenian “goods” in payment for them. Iran -- Iranian Energy Minister Reza Ardakanian (R) meets with Armenia's Deputy Prime Minister Mher Grigorian, Tehran, July 2, 2019. Grigorian confirmed that the Iranian side floated the idea during the talks. “Such an issue was discussed and negotiations regarding this will certainly continue,” he told RFE/RL’s Armenian service. “We expect that a group of Iranian specialists will visit Yerevan soon and I think that discussions on this issue will continue.” “This topic needs further elaboration because it is quite interesting in itself,” said the Armenian vice-premier. Grigorian said the Armenian government is interested in greater gas supplies from Iran because it believes they could cut domestic prices of gas and electricity. He made clear that “the most desirable option” for Yerevan is to continue to pay for Iranian gas with electricity, rather than other goods. Armenia is currently building a third high-voltage transmission line that will connect Armenian and Iranian power grids. The new line, slated for completion next year, will allow it to almost triple power supplies to Iran. While in Tehran, Grigorian also met with Iranian President Hassan Rouhani. The latter told him that the two neighboring nations should deepen their relations despite the U.S. economic sanctions against Tehran. The gas issue was high on the agenda of Prime Minister Nikol Pashinian’s February 2018 visit to Iran. Speaking after talks with Pashinian, Rouhani expressed Tehran’s readiness to sell more gas to Armenia. Tsarukian Also Sees No Constitutional Court Crisis • Astghik Bedevian Armenia -- Prosperous Armenia Party leader Gagik Tsarukian arrives for a parliament session in Yerevan, July 9, 2019. Prosperous Armenia Party (BHK) leader Gagik Tsarukian joined on Tuesday other opposition figures in defending the legitimacy of the Constitutional Court challenged by its newest judge and Prime Minister Nikol Pashinian’s political allies. Immediately after being elected by the parliament and sworn late last month, the judge, Vahe Grigorian, claimed that only he and another judge of the 9-member court, Arman Dilanian, can make valid decisions. Grigorian argued that under constitutional amendments which took effect last year the Constitutional Court now consists of “judges,” rather than “members,” as was the case until April 2018. He said that the seven other members of the court therefore cannot be considered “judges.” The eight other members of the Constitutional Courts, including Dilanian, dismissed the claims in a joint statement, saying that they “cannot have any legal consequences.” Senior lawmakers from the BHK and the other opposition party represented in the parliament, Bright Armenia, also disagreed with Grigorian. The BHK’s Gevorg Petrosian said an article of the amended constitution makes clear that the court members appointed before 2018 can serve as judges until they turn 65. Tsarukian also denied the existence of a constitutional crisis in the country. “I don’t see anything [wrong,]” he told journalists. “People can’t just wake up and express a thought or draw a conclusion so that things move in that direction.” Grigorian elaborated on his claims in a lengthy letter to Armenia’s government, parliament and top judicial officials publicized on June 28. He urged them to help resolve the “crisis” and proposed three different solutions, including the election of seven new Constitutional Court judges by the National Assembly. None of those state institutions has officially replied to Grigorian’s letter so far. Some parliament deputies from the ruling My Step alliance have publicly sided with the judge in the dispute. Still, My Step’s parliamentary leader, Lilit Makunts, said on Tuesday that the parliament’s pro-government majority has not yet formulated an official position on the issue. “Our parliamentary faction does not have a decision at the moment as to what roadmap we will be following,” Makunts told RFE/RL’s Armenian service. “We have certainly familiarized ourselves with the letter but are in no rush to come up with any solutions or proposals.” “I don’t exclude that we will accept Vahe Grigorian’s proposal,” she said. “Nor do I exclude that we will propose our own solutions.” Poll Shows Continuing Support For Armenia’s Government • Susan Badalian Armenia -- Supporters of Armenian protest leader Nikol Pashinian gather in Republic Square as parliament holds a session to elect a new prime minister in Yerevan, May 8, 2018 One year after the “Velvet Revolution” that brought Nikol Pashinian to power, most Armenians continue to support his government and remain optimistic about their country’s future, according to a U.S.-funded opinion poll. The nationwide poll was commissioned by the Washington-based International Republican Institute (IRI) and conducted in May by the Baltic Survey/The Gallup Organization and the Armenian Sociological Association (ASA). It was financed by the U.S. Agency for International Development (USAID) The survey released by the IRI late on Monday shows, in particular, that 60 percent of 1,200 randomly interviewed people across Armenia believe that their country is heading in the right direction. Although the figure represents a 12 percentage point drop from the previous IRI survey conducted in October, the U.S. institute said it indicates a “significant expression of continued confidence in the new government.” Accordingly, 59 percent of those polled said they would vote for Pashinian’s My Step bloc if Armenia held general elections next Sunday. Businessman Gagik Tsarukian’s Prosperous Armenia Party (BHK) would finish second with 12 percent, followed by the former ruling Republican Party (HHK), whose top leader, Serzh Sarkisian, was overthrown in last year’s revolution. The HHK was backed by 5 percent of respondents, making it the third most popular party. Armenia -- Prime Minister Nikol Pashinian attends a parliament session in Yerevan, January 14, 2019. My Step garnered over 70 percent of the vote in the December 2018 elections. The opinion poll suggests that popular support for Pashinian’s bloc has somewhat declined since then. It indicates slight increases in the BHK’s and the HHK’s popularities. In the December polls, the HHK narrowly failed to clear the 5 percent vote threshold for entering the new Armenian parliament. Gevorg Poghosian, the ASA head whose organization carried out the fieldwork for the survey, predicted that Sarkisian’s party will attract a larger following over time because it is the country’s “most pronounced opposition force” that regularly and strongly criticizes the current authorities. When asked about the Pashinian government’s biggest achievements, the largest proportion of respondents (27 percent) pointed to a decrease in corruption, while 11 percent singled out “the improved psychological state of people.” Only 3 percent chose “socioeconomic improvement” as an answer to the question. “Bad management” was the most frequent answer (22 percent) to a question about the government’s biggest failures. And almost one in ten respondents blamed it for “political instability” in the country. Even so, as much as 72 percent of respondents were satisfied with Pashinian’s performance. President Armen Sarkissian, who has largely ceremonial powers, and the Armenian military had even higher approval ratings: 81 percent and 80 percent respectively. “The goodwill expressed by the Armenian people presents the Armenian government with an unprecedented opportunity to undertake fundamental reforms that strengthen the country’s democracy and improve the economic well-being of its people,” Stephen Nix, the IRI director for Eurasia, said in a statement. “The government’s speedy delivery on reforms will be key to maintaining its strong public support and the momentum to press on with its agenda,” Nix added. Press Review “Hraparak” reports that a pro-government member of Armenia’s parliament, Hayk Sargsian, has demanded that law-enforcement launch criminal proceedings against several media outlets that have published reports critical of him. Sargsian is quoted as saying that those reports are not only slanderous but also pose a threat to the country’s national security. The paper ridicules that claim, saying that Sargsian does not seem know that libel had long been decriminalized in Armenia. “The parliament deputy [Hayk Sargsian] does not realize that after getting elected to the legislative body one must be ready for being the target of harshest criticism,” writes “Zhoghovurd.” “Being a representative of the state authority is not only a pleasure or privilege but also responsibility along with a portion of inevitable criticism that comes with it.” The paper too dismisses Sargsian’s claims about national security threats. “The most worrying thing in this situation is the very fact that it occurred to Hayk Sargsian and his lawyer to have media outlets undesirable for them shut down,” it says. “This is a serious blow to not only the freedom of expression but also broader democracy in our country. One must revolt against this development. Or else, this precedent could be irreversible and everyone could ask the Special Investigative Service to shut down media outlets under the guise of national security.” “Zhamanak” comments on recent days’ deadly car accidents which have rekindled public debate about the poor state of road safety in Armenia. The paper says that the Armenian traffic police alone cannot seriously reduce such accidents because “it is simply not possible to have so many police officers and surveillance cameras that would ensure a close monitoring of everyone and everywhere.” It calls for greater public awareness of the risks of reckless driving and the creation of a more adequate road infrastructure. “In this regard, nearly 90 percent of Armenia’s roads do not meet those [safety] standards,” it says. (Lilit Harutiunian) Reprinted on ANN/Armenian News with permission from RFE/RL Copyright (c) 2019 Radio Free Europe / Radio Liberty, Inc. 1201 Connecticut Ave., N.W. Washington DC 20036. www.rferl.org