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09.06.2016
Speech by RA NA Speaker Galust Sahakyan during Debate of Annual Report on RA State Budget Execution for 2015
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“I think it is a good occasion for summing up the main results of the economic policy implemented during the previous year, the assessment of the existing works and the outline of appropriate steps and approaches in that direction. To my deep conviction, the debates of this report, at the Standing Committees and  at the plenary sitting went on in that very logical way.

I don’t want to touch upon the numbers and facts presented in the report, as the representative of the Government and the deputies have already introduced them in detail. I don’t want also to touch upon the achievements and successes recorded in 2015, which promoted the normal life of the state and the vital activities of the society. I believe at this moment it is more important to evaluate the prior problems, to the solution of which we should address the activities of the government in future.

Of course, in 2015 in the conditions of international unfavourable economic environment in Armenia's main trade-economic countries, especially, in Russia, a number of factors emerged, and their negative impact was strongly considerable on the economy of our country. In such conditions, it is understandable that much greater efforts were required from the government for the state budget execution, and in honour of our government we should mention that all expenditure programmes designed by the budget of 2015 have been carried out, where the financial programmes of social and defense sphere prevailed. It witnesses, certainly, to the fact that the provision of the security of the country and the solution of the population's social problems continue remaining as main priorities of the activities of the republic's authorities.

Moreover, in a number of spheres certain preconditions have been created for the provision of progress and rectification of some negative tendencies. I would like to especially highlight the fact that in the conditions of the foreign economic unfavourable environment due to undertaken steps it became possible to avoid undesirable developments and close the year with three percent economic growth.

Certainly, the recorded achievements are not sufficient for the solution of the accumulated problems, and the authorities are well aware of them. We should not be restricted with what we have achieved, and we should continue our consistent steps for withstanding the political and economic challenges facing the country, solving the existing problems in dignified and efficient manner. I would like especially to focus on the problems, the solution of which can be of key importance in the coming years in terms of the economic development of our country. The geopolitical developments of recent months have created new challenges for the provision of the country's security and the establishment of guaranteed peace. To my deep conviction, it is possible to withstand them only in case of consolidation of forces and more efficient and rational use of our resources. That, first of all, relates to the budgetary means. In this sense, I welcome the policy declared by the government in making the state administration system more compact and less expendable. It should certainly, suppose not mechanical decrease of expenditures, but also complete solution of the problems facing the management system through the execution of minimum expenditures. We should evaluate the efficiency of the budgetary expenditures in terms of output. In the coming years, in the context of the problems to be solved I would like especially to emphasize the improvement of the business environment. Despite the consistent steps undertaken in recent years by the authorities in that direction, nevertheless, the present environment still cannot be considered satisfactory. I am sure that the Government will continue its declared policy in terms of the improvement of entrepreneurship activities, and I consider one of the important steps to be taken the adoption of the new Tax Code. That, certainly, should ensure favourable tax environment for being engaged with stable, predictable business, at the same time not endangering that collecting process of the state revenues. I am more than sure that together with our colleagues of the government we will reach efficient and comprehensive solutions, creating necessary preconditions for the development of the country. The Tax Code should become a guarantee of long-term development of the economy, being directed to the formation of the competitive economy. At the same time, the government should apply practical means for providing different forms of the state support to those being engaged with entrepreneurship activities, the involvement of necessary financial resources for the loan of the small and medium enterprises to implement programmes of social direction. The rise of the businessmen's economic freedom level should become one of the main priorities of the government. The next important problem, I would like to touch upon is the foreign state debt by the end of the financial year - almost 4.3bln USD or 41.4% of GDP of the republic. The service of the latter takes considerable means and restricts the possibilities of the inner market development. I think that though the present index of the foreign debt is at acceptable borders, nevertheless, it is a rather big burden for the country. In this respect, I would like to highlight the issue of more efficient use of the foreign loan and making stricter the control towards them.

Dear colleagues, summing up my speech I would like to underline that the Annual Report on RA State Budget Execution for 2015 testifies to the fact that we mainly could successfully withstand the challenges facing our country and provide sufficient guarantees for the solution of the existing problems. I assure you that the authorities have sufficient political will for solving the problems accumulated in the country. Hence, I call on to approve the Annual Report on State Budget Execution of the Republic of Armenia for 2015 and support the government in the implementation of the programmes.”


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