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15.11.2006

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15.11.2006
Debates of the Draft on 2006 State Budget Ended

At November 15 sitting of the National Assembly the MPs adopted by voting legislative packages on the Employers’ Unions, on Making Amendments to the RA Law on Tax Service, on Legal Regime of Martial Law, on Making Amendments to the RA Law on Land Tax, on Making Amendments to the RA Law on R А Administrative Territorial Division, on Making Amendments to the RA Law on Local Referendum, on Making Amendments and Addenda to the RA Code on Administrative Offences, and drafts on Recognizing Invalid a Number of the Laws and Decisions of the RA Supreme Council, and on Automobile Transport, on Automobile Roads, on Making Amendments and Addenda to the RA Law on Legalization of the Incomes Received in Criminal Way and the Struggle against Financing Terrorism and on Making Amendments to the RA Law on Service Providing Compulsory Execution of Judicial Acts. The MPs also ratified Q 5380 letter-agreement contract on Advance Payment to Preparation of the Second Program of Judicial - Legal Reforms between R А and Association of the international development. The draft laws on Alienation of the Property For Public and State Needs, on Making Amendments to the RA Land Code and on Making Amendments to the RA Civil Code, which had a wide resonance in the society recently, were adopted with the correlation of 67 votes for, 3 abstained and 0 votes against.

Then the exchange of the opinions on the draft law on 2006 State Budget proceeded.

Mr. Norayr Davidyan, Minister of Healthcare of the RA, by the right of speech given to the members of the Government, presented the expenditure articles, envisaged for the sphere. The expenditures of the healthcare sphere come up to 46639,6 million drams . 16848,9 million drams are envisaged for the hospital medical aid. The accounting average monthly salary of the medical personnel is envisaged to increase to 42,6 thousand drams , and the accounting average monthly salary of the middle medical personnel- up to 33,3 thousand drams . 16766,3 million drams are envisaged to allocate in 2007 for the primary medical aid.

Mr. Artashes Geghamyan presented the view of the National Unity faction. He assesses the budget in the view of the struggle against the challenges facing the country. The above-mentioned challenges are the decrease of the rates of the growth of the population in the sphere of demography, the growth of divorces during last years, reduction of the volumes of the industry, energy, export and freight transportationduring last 9 months, the failure of the settlement of the Nagorno-Karabakh conflict. Mr. Artashes Geghamyan considers that bringing the share of the budget in the gross national product up to 22-25% becomes possible to direct the received 150 billion drams to the prevention of the mentioned challenges.

Mrs. Heghine Bisharyan, secretary of the Rule of Law faction expressed the view of the faction.She considers that it is necessary to allocate sums by the state budget for providing young families with apartment. Mrs. Bisharyan emphasized the importance of implementation of medical aid within the framework of the state order, the increase of the basic pensions, the increase of sums in the budget, allocated to the compensation of deposits and the transparency of the process of the compensation.

The Entrepreneur deputy group welcomes the draft on 2006 State Budget and expresses readiness to support its execution. In the opinion of Mr. Mekhak Mkhitaryan, secretary of the faction, the draft on the budget is a political document. Mr. Mkhitaryan highly assessed the work of the customs and tax bodies in gathering incomes.

Mr. Hrayr Karapetyan, head of the ARF faction, expressed the view of the faction saying that the Government of the Republic of Armenia has presented the draft of the budget based on the projects of mid-term development, poverty reduction and anti-corruption strategy. According to Mr. Karapetyan, besides the increase of the pensions, theincrease of the salaries of teachers, doctors, civil employees and scientists is a welcoming fact. He considers that the fight against the shadow economy is inefficient: firstly it is necessary to start the fight in the circle of the large tax bearers.

Mr. Grigor Harutyunyan expressed the negative view of the Justice faction related to the draft on budget. He qualified the draft as survivaland consumer budget. Emphasizing the importance of the fight against the corruption Mr. Harutyunyan reminded that according to the data of the international organizations, Armenia is classified in the row of the most corrupt countries. He highlighted the establishment of the institute of insurance and the consolidation of the society.

Mr. Mkrtich Minasyan presented the view of the People's Deputy group informing that according to the macroeconomic analysis of the 2007 State Budget proportional development of the incomes and expenditures was recorded. According to Mr. Minasyan, the budget is realistic and has a social orientation. It was informed that the group will vote for the draft.

The view of the RPA faction on the draft of the budget was positive: Mr. Galust Sahakyan, head of the faction, informed about it. He noted that by the budget draft the sums were allocated for the reconstruction of the disaster zone. Mr. Sahakyan spoke about the social orientation of the budget.

In his final speech Mr. Vardan Khachatryan, RA Minister of Finance and Economy, touching upon the six-year work of the Government, informed, that during this period the budget had provided a low rate of inflation and two-digit economic growth. According to the Minister, at such economic growth in some years Armenia will be classified among the average developed European countries.

The MPs debated the treaty on the Establishment of the Inter-state Fund of the Humanitarian Cooperation of the Participant-states of the Commonwealth Independent States and the draft on the Order of Compensation by the State the Losses of the Community Budget Incomes as a Result of Entering into Force the RA Laws Reducing the Community Budget Incomes.

According to the NA Rules of Procedure, the last sitting was dedicated to the question and answer session of the MPs and Government.

The work of the NA four-day sittings will proceed on November 16.




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