In accordance with Article 70 of RA Constitution on June 2 an extraordinary sitting was held on the 
initiative of RA Government.
NA deputies debated the bill On Amending the RA law on Budget System of the Republic of Armenia, which presented RA Ministry of Finance Mr. Tigran Davtyan.
Mr. Davtyan answered the NA deputies’ questions.
Speaker of the National Assembly Mr. Hovik Abrahamyan gave an extraordinary speech on the debating issue (below we present his speech).
“Dear colleagues!
The draft law on Amending the Law on The Budgetary System of the Republic of Armenia, which was submitted to RA National Assembly by RA Government contains a distinct proposal: replace the word in the 5th paragraph of the 3rd part of Article 12 of RA law on Budgetary System of the Republic of Armenia, passed on June 24, 1997.
It’s not a secret that 12 years ago this provision of the law passed by the RA National Assembly aims to provide the financial-budgetary security of the state and keep free from financial possible shocks. In particular, the volumes of expenditures compared with the profits cannot continuously increase and fixing them within 5 % limits during the period after passing the law, played its positive role.
Moreover, during the recent years the RA state budget mainly have not exceeded even the limit of 3 per cent, and I am sure that this tendency will be continued, if the world financial crisis, together with other countries, will not also shake the tendency of the stable development of the economy.
The concern of the Government is conceivable and acceptable for us: provide the execution of the state budget by the law, especially not allowing timely allocations of the social expenditures.
It’s desirable that the excess of the state budget expenditures towards the profits, the deficit, only 7.5% will be only fixed in the law in the present phase, and I am expecting that entering into the phase of the development of the economy, the Government will have the same initiative fixing the permissible deficit within the limits of 5%.
It’s known that there are two sources, internal and external, of financing the deficit of RA state budget. In the draft law it’s noted, in general, about the necessity of involving the financial means. It’s desirable to clarify how much financial resources the Government is going to include in the internal expenditure and how much in the external resources. At last, which one is preferable from those?
Finally, it’s desirable to stabilize the situation not only by including financial resources, but also by increasing or at least maintaining the state budget. It’s understandable that the volumes of the main taxpayers’ production of the budget have not been decreased because of financial crisis, the local production have been fallen and the importing volumes have been increased.
In general, I think the submitted draft law is the imperative of time and I call on my colleagues to express their positive attitude towards it, and at the same time I express hope that it will serve the mentioned aim in the substantiation of the draft law.
Other deputies of the National Assembly gave speeches on the debating issue.
The NA Deputies also debated the agreement on Allocating State Credit to the Republic of Armenia between the Government of the Republic of Armenia and the Government of the Russian Federation, signed in Moscow on May 20, 2009, submitted by RA Speaker, which presented RA Minister of Finance Mr. Tigran Davtyan.
Mr. Davtyan answered the NA deputies’ questions.
In response to the question of the Speaker of the National Assembly Mr. Hovik Abrahamyan, by what principle will the credit be distributed, how much the Government will allocate to the business programmes and what rate will be paid to the private sector, he said that the distribution of the credit is designed in two directions to the small and medium enterprises: one direction is the allocation of the credit to RA Central Bank, which will distribute to the commercial banks, the latter will distribute to the enterprises, the other direction designs immediate crediting or financing by the operative headquarters of the government. RA Government has drafted criteria of allocating those credits. It envisages events in decreasing the percentage rates of the commercial banks. There will be a distinct distribution, the most part of which will serve for financing the economy.
NA deputies Mr. Styopa Safaryan and Mr. Armen Martirosyan in their 
speeches considered unacceptable taking such credit without any substantiation and actions plan.
NA deputy Mr. Karen Chshmarityan submitted the RPA faction’s view that everything was said except the main problem, and substantiated 
proposals were not presented.
NA deputies ratified by voting the agreement, debated and passed the bill on Amending the RA law on Budgetary System of the Republic of Armenia in the second reading.
The National Assembly exhausted the agenda and ended the extraordinary sitting.
