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On December 9 the National Assembly continued the work of the four-day sittings. Within the framework of the Open Lesson programme this time the senior classes of the schools of Ajapnyak and Davtashen communities took part in the sitting and followed the works of the legislative body.

The representatives of the parliamentary factions continued submitting their views on the final version of the draft budget On RA 2011 State Budget.

Introducing the conclusion of the NA Standing Committee on Financial-Credit and Budgetary Affairs on the final version of the draft budget Gagik Minasyan noted that compared with the last year there was considerable difference on the expenditures and incomes.

Introducing his view on the draft budget of RA 2010 State Budget RA NA Speaker Hovik Abrahamyan noted that the document under debate was important for the further development of the economy of the country and was one of the main goals of the draft budget was to take the economy of the country out of the financial-economic crisis to enlivening, and later into a phase of sustainable development. As in the previous year, as now, taking into account, in one hand the concerns raised by the National Assembly, on the other hand the borrowed new financial resources, the sums allocated to the expenditures in 2011 state budget had been essentially grown. “Though the share of the shadow economy remains high, the government tries to reduce it by the arrangements strictness of the tax administration and transparency of the work of customs bodies.Highlighting the reforms of the tax administration the NA Speaker noted: “It’s evident that the reduction of the shadow economy is greatly conditioned by the rise of the efficiency of the tax system. In our opinion, in the coming years the tax-budget policy mainly should be aimed at providing continuous and efficient implementation of the ongoing reforms, which should be characterized by clarification and simplification of the tax legislation. Being based on the principles of providing conditions of free economic competition we should take radical steps in applying important psychological approaches, for example, the equal and fair distribution of tax burden of entities being taxed in different regimes of taxation. The arrangements should be made in returning more of the tax obligations paid sums from the state budget, as well as in legislatively improving the mechanisms of self-assessment of the tax obligations by the taxpayers. The key directions of the tax administration being implemented should be the reduction of the shadow turnovers, the efficient use of the tax levers of responsibility towards those who had not fulfilled the demands of the tax legislation, as well as the provision of the rise of the level of levying the non-fulfilled tax obligations. In fact, in the sphere of tax control the improvement of the preventive arrangements and wide-scale use would enable to provide the stability of collecting the tax incomes.” I think that the RA State Revenue Committee should be more accountable before the taxpayers in order they would be sure while paying the tax that they are efficiently spent by the state.” According to NA Speaker, it is necessary to focus on the efficient use of the regulating and controlling functions of the state. In his word, the high share of the shadow economy is also a serious obstacle in serving the external debt. It is envisaged that the burden of serving the external debt will be espescially hard in 2013-2014. The level of the foreign debt should remain within the borders of governing and the new involving debts should be with favourable conditions. It’s obvious that only developing economy can guarantee the coverage of the debt.” “In this issue, by our assessment, as well as the assessment of the international structures an acceptable version for the development of the economy is elected.”

In the sphere of agriculture Hovik Abrahamyan proposed to take more practical steps in raising the competitiveness of the agricultural production, especially with respect to the registered fall in climatic unfavourable conditions and provision of food security in the country,

The NA Speaker noted that the 2011 draft budget, having commonness with the budgets of the previous years, nevertheless had certain differences and peculiarities. “In different speeches it has been sounded that in 2011 the budget has certain risks. Of course, the coalition government for its assumed obligations and pursued policy needs concrete expenditures. It would be good there would be more flexible mechanisms for the implementation of those programmes and expenditures in the budget draft laws.”

“The year 2011 is considered post-crisis year, therefore, it is supposed that bigger growth of incomes should be provided this year, than during the previous years. Accepting this reality, nevertheless, a question arises: at what means the envisaging growth of the incomes will be provided, and at the expense of what group of taxpayers will be provided? Isn’t there fear that this growth, in fact, will be provided not at the expense of the big army of the taxpayers, but also at the expense of the limited taxpayers?” “Recently we speak too much about the tax reforms, and the National Assembly goes forward to the government, discussing and accepting a number of laws, by which an attempt is made to simplify the taxing mechanisms and facilitate the business environment. Taking into account the international experience, to what extent are the reforms equivalent and the provision of the envisioning growth of the incomes? Does the 2011 budget consider prior in those reforms the fiscal problem? As far as I know, a number of countries being on the path of the reforms, including some CIS countries envisage concrete events and resources for the solution of these problems in their budget, and there are states, which in 2011 for that goal envisaged incomes not exceeding the ones in pre-crisis year. Of course, all of us know that in different spheres of economy shadow circulations are available, at which expense it is possible to solve the above-mentioned problem, however during budget debates, I think the issue what the government arranges and what steps takes in order to solve the problems for the improvement of the business environment and providing the rise of the expenditure efficiency and the envisioning growth of the incomes, hasn’t been completely solved,” the NA Speaker presented his interpellations.

In Hovik Abrahamyan’s word, in the country with building science-based economy it’s important to specify what sums and with what goals we shall allocate for the development of the science not only in Yerevan, but also in the marzes. “There are also other observations, which our colleagues touched upon and I don’t see the need of repeating them. Nevertheless, voluminous and useful work is done. I emphasize especially to the NKR by the Republic of Armenia, as the guarantor of security of population of the Nagorno Karabakh Republic, the issue of the economic support, the provision of the inter-state credit. I also highlight the problems of the restoration of the city of Gyumri and the development of the borderline regions.” “The implementation of the 2011 state budget can play an essential role for the fulfillment of the government’s programme approved by the National Assembly of the Republic of Armenia, in which the state had assumed the guarantee of the secure dignified life and opportunity of self-expression for every member of the society and satisfaction of the minimum necessary needs of the members of the society needing social security prescribed by law. Of course, the draft law objectively expresses the present economic situation of the country and the coming expectations. The share of the direct taxes in the tax incomes remains at the low level. The draft law includes in itself elements of the additional rise of the pensions and state allowances, certain social indices have been deviated from the envisaged part by the programme of the stable development adopted by the government in 2008, which is more painful especially in the conditions of the current inflation of the consumption prices. I am sure that all the wings of the power and the political forces represented there have one goal and serve for one common thing: the strengthening of the security of the country and the development of economy.In this aspect, as Speaker of the National Assembly, I highlight the submitted RA draft law On 2011 State Budget of the Republic of Armenia, and I am sure it will promote the efficient solution of the problems laid before us. Thus, I call on to vote for RA draft law On 2011 State Budget, approve it and continue the close cooperation of the legislative and executive bodies for the benefit of the implementation of our programmes and for the development of Armenia: those are the approaches of the RPA faction,” the NA Speaker Hovik Abrahamyan concluded.

In his final speech RA Prime Minister Tigran Sargsyan agreed with the NA Speaker’s observations that there were still unsolved problems in the spheres of tax burden, reduction of shadow economy and in other spheres, and underlined that they were at the center of attention of the government and parliament.

The parliament passed the draft law on RA 2011 State Budget with the correlation of votes 80 for, 1 against and 2 abstained.

The NA Speaker Hovik Abrahamyan also put for voting the draft law submitted by the Heritage faction On Recognizing the Nagorno Karabakh Republic.

The parliament made a decision on the draft law with 13 for, 0 against and abstained.

Then the parliament passed to the debate of the issue on appointing a member of RA Constitutional Court. The NA Speaker Hovik Abrahamyan said that the President of the Constitutional Court Gagik Harutyunyan addressed the National Assembly in October this year on making appointment for the vacant position by the National Assembly in connection with stopping the authorities of the member of the Constitutional Court. Being led by the Article 83 of the Constitution and accepting as basis the Article 98 of the law NA Rules of Procedure, the NA Speaker nominated for the vacant position of the member of the Constitutional Court the candidacy of the Head of the Legal Department of the National Assembly Staff Ashot Khachatryan. Mr Abrahamyan presented a number of considerations, which served as basis for nominating candidacy. During the period working in the National Assembly the candidate displayed himself as conscientious, experienced and a person with professional high abilities and skills. He actively took part in the activities of the working groups set up by RA President and by his orders and in the committees while preparing the documents concerning the drafting of many laws and implementation of the legislative policy. According to Mr Abrahamyan, the efficiency of the works by Ashot Khachatryan and the department led by him testifies to the active participation in the standing committees and the provision of the MPs’ legal consultancy.

The NA Speaker noted that the candidate nominated by him was Doctor of Law, professor, who took part in the drafting of the law on Amending the basic law of our country in 2004-2005, the publication of the commentaries of the Constitution, preparing the commentaries of a number of articles of the Constitution. As a specialist of the constitutional law he gives lectures in RA higher educational institutions, at the same time also being a member of the scientific degree granting council of law. The head of the parliament noted that in t5he parliamentary practice it’s the first time that the representative of the staff of the National Assembly is nominated for being appointed in the position reserved by Constitution by the National Assembly. As head of the higher representation body of the country Mr Abrahamyan thinks that the National Assembly shall become a forgery also in other state institutes while appointing.

The candidate of the CC member Ashot Khachatryan thanked the NA Speaker for nominating his candidacy and for trusting him.

In their speeches the NA deputies Styopa Safaryan, Vardan Ayvazyan, Hovhannes Margaryan, Artak Davtyan, Rafik Petrosyan, Mkrtich Minasyan, Galust Sahakyan, Vardan Bostanjyan and Larisa Alaverdyan highly assessed the professional and human qualities of the candidate nominated by the NA Speaker. They also congratulated their counterpart Arevik Petrosyan, who was appointed by RA President Serzh Sargsyan’s decree the day before member of RA Constitutional Court.

The Chairman of the NA Counting Commission Gagik Melikyan said that as a result of voting with 80 for and 1 against Ashot Khachatryan was appointed CC member.

The NA Speaker Hovik Abrahamyan noted that Arevik Petrosyan was also appointed member of CC by RA President Serzh Sargsyan’s December 8 decreeHe noted that according to the Article 4 of RA law On CC the CC member assumes the post by vowing at the NA sitting.

In her speech the CC member Arevik Petrosyan thanked the RA President Serzh Sargsyan for trust, which was a big honour and responsibility for Mrs Petrosyan. She thanked her deputy colleagues for joint work and cooperation.

The other newly appointed CC member Ashot Khachatryan thanked all parliamentary factions, independent deputies for trust. He ensured that with his activity he would try to justify that trust.

Then the sworn-in ceremony was held. Assuming the position of the CC member Arevik Petrosyan and Ashot Khachatryan swore to provide the rule of the Constitution, be unbiased and adherent to the call of the CC member.

The NA Speaker congratulated the CC newly appointed members and wished fruitful work and new successes for the benefit of the Republic of Armenia.

During the day the parliament in the procedure of the first reading debated the RA draft law On Purchases.

The parliament by voting passed the debated bill.

RA NA Speaker Hovik Abrahamyan announced the eighth session of the National Assembly of the fourth convocation closed. The NA Speaker that on Monday the government convened an extraordinary session.

Under the RA anthem the eighth session of the National Assembly of the fourth convocation ended its work.