WB STUDY: PUBLIC EXPENSES ON EDUCATION AND HEALTH CARE IN ARMENIA LOW
By Aghavni Haroutiunian
AZG Armenian Daily #139
25/07/2007
Finance and Economy
The World Bank study "Fiscal Policy and Economic Growth: Lessons
for Eastern Europe and Central Asia" includes the public expenses
and fiscal tendencies of Eastern Europe, Turkey and Central Asia
from 1990 to 2004 and their comparison with the countries of high
economic growth.
According to that study, represented by the World Bank County Manager
for Armenia Aristomene Varoudakis on July 23, more efficient public
expenses, low fiscal deficit and right taxation policy will contribute
to the economic growth in Armenia.
The study was first represented in Brussels, on July 2.
According to Mr. Varoudakis, the experiences of those countries assure
that in case of good government the public expenses will contribute
to the economic growth.
When the public expenses exceed about 1/3 of GDP, they are combined
with the low economic growth in the countries that have weak
government.
"The high level of public expenses is at risk, when the state
institutions are weak", mentioned the World Bank representative.
The public expenses on education and health care in Armenia are low
in comparison with GDP. The financing of education has improved in
the sphere of general education, but the quality is still a serious
issue in that sphere.
Though the health care system in Armenia is more favorable compared
with other countries of the same level, its financing still remains
incomplete.
The participation of the private sector in power engineering and water
spheres is big in Armenia, but it’s limited in the sphere of transport.
The on-budget expenditures on government, education, health care and
social spheres are low because of informal economy in the country,
though the expenditures can be increased by the amendments to fiscal
bureaucratism.