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  • Maintain Rate Of Economic Growth

    MAINTAIN RATE OF ECONOMIC GROWTH

    NKR Government Information and
    Public Relations Department
    April 21, 2009

    At the NKR Government Session

    Today, the regular session of the NKR Government conducted by the
    Prime Minister Ara Haroutyunyan has taken place.

    >From a number of returns foreseen by the agenda, the Executive first
    touched upon implementation of the NKR State Budget 2008. Reporting
    on recorded budgetary proceedings of the previous year, the Vice
    Prime Minister, Minister of Finance Spartak Tevosyan announced main
    socio-economic figures and facts characterizing the year. According to
    his presentation, in spite of the influence of world-wide financial and
    economic crisis of the end of 2008, the Republic's economic increase
    formed 14.3 %. By rated expression the GDP (Great Domestic Product)
    formed 87.1 mlrd drams (70.8 mlrd drams in 2007). The per capita GDP
    formed 623.1 thousand drams or 20036.5 USD against 510.0 thousand
    drams or 1489.5 USD in previous year.

    In 2008 volume of industrial production formed more than 25.3 mlrd
    drams factually increasing by 11.6 % in comparison with 2007. The
    gross output of agriculture formed 31.2 mlrd drams increasing by
    25.4% if compared with 2007. Volume of capital construction carried
    out at the expense of all sources financing formed 25.8 mlrd drams,
    which in comparison with the previous year has increased by 24.2%
    or 5.0 mlrd drams.

    Volume of foreign trade turnover in 2008 formed 305.063 mln USD
    increasing by 10.0% in comparison with 2007, including increase of
    import volumes by 22.0 %, which form 249.974 mln dollars, and export
    volumes decreasing by 24.1 % forming 55.1 mln dollars.

    The size of an average monthly salary of a working man in 2008 formed
    80480 drams, in comparison with 2007 the nominal increase formed 17.3 %
    and the factual one 6.1 %.

    Parallel to economic growth and employment the population's monetary
    incomes and expenses have also increased. In comparison with 2007
    the population's monetary incomes in 2008 have increased by 16.9 %
    forming 80.8 mlrd drams, and monetary expenses have increased by 18.3
    percent forming 79.1 mlrd drams.

    According to brief information, private incomes of the NKR State
    Budget in 2008 formed 199911733.8 thousand drams, implementing the
    index of anticipated annual programme by 99.6 %In comparison with
    2007 incomes of the State Budget last year increased by 32.3 % or
    4863350.7 thousand drams. At the expense of state means expenses at
    about 50074650.5 thousand drams were carried out, which formed 95.0 %
    of the envisaged programme.

    The other presented numerous figures affirm that the NKR State Budget
    2008 was implemented the way it was presumed. Speaking about that
    A.Haroutyunyan at the same time clarified that nonfulfilment of the
    expenses in some articles were not preconditioned by the deficiency
    of finance, the Government had performed some cutting down (prune
    the budget) reasoning from (on the assumption of) financial and
    economic practicability. The Prime Minister emphasized that last
    year all envisaged social programmes were realized, some of them
    being included into pre-election programme of the NKR President for
    the first time were put into practice. Importance was attached to
    maintenance of recorded index of VAT within the year In this view
    A.Haroutyunyan noted that the crises has no profound negative impact
    upon general socio-economic developments in the Republic, though in
    the first quarter of 2009 undesirable consequences had already been
    recorded. The situation dictates to make expenses from the State Budget
    utterly economically and cautiously. State Budget means, first of all,
    must be directed at arrangements, which are aimed at creation of new
    work places and economic rates growth.

    The head of the Government underlined that it is essential to
    accumulate funds for resisting new attacks of difficulties caused
    by financial crisis the chances of which are still good. Confidence
    was expressed that this year as well all social payments will be
    performed. Making voluminous investments will continue, in particular,
    in the spheres of agriculture and capital construction. At present
    the main goal of the Government is to fight for considerable economic
    growth rate and in the nearest future to achieve the internationally
    acknowledged level of GDP per head.

    At the session the Executive discussed and approved draft laws on
    making changes and additions in two laws of the NKR. The first was
    concerning changes in the essence of the NKR law "On Procurement" which
    is aimed at elimination of omissions and ungrounded expenses. The
    Prime Minister A. Haroutyunyan considered the facts of purchasing
    goods at prices higher than market ones unforgivable. He recommended
    to reconsider the procedure of rivalry in procurement to make it
    profitable. It is high time to have an efficient procurement system,
    the head of the Government noted.

    By one another draft law additions and changes to the NKR law "On
    Obligatory Social Insurance in Cases of Temporarily Disablement"
    were proposed. The two draft laws approved by the Executive will be
    submitted to the discussion of the NA of the NKR.

    The accounts of the Ministries of Economic Development, Healthcare,
    Education and Science on their activity of 2008 were considered at the
    Government session. According to the presentation by Benik Babayan,
    Minister of Economic Development, last year the economic policy
    carried out by the department under his authority was directed to
    the formation of stably developing and competitive economy through
    spurring diversification and the increase of productivity. With this
    aim the Ministry drafted 129 Government decrees and 12 law projects
    and submitted them to the discussion of the Executive.

    Touching upon the issues of economic development Prime Minister
    A.Haroutyunyan noted that it is necessary to draft and implement a
    programme of economic macro stability, to secure the proportionate
    territorial development of the Republic. The Prime Minister drew the
    attention of the Government to the fact that GDP in its dynamics is
    quite risky and maximal private funds are to be in possession so that
    to be insured against economic warfares.

    The changes in the sphere of healthcare were reported about by Armen
    Khachatryan, Minister of Healthcare. He particularly noted that in the
    accounting year special attention was paid to the issues of health
    units' proportionate development in the regions of the Republic,
    prophylaxis, mother and child healthcare, to those of promoting the
    level of childbirth assistance, quality and accessibility of medical
    assistance, technical re-equipment of medical posts. According to the
    Minister, the reconstruction and re-equipment of "Arevik" children's
    hospital, acquisition of a mobile reanimation saturated with modern
    equipments for the ambulance service, provision of free medicine for
    the patients treated for hemodialysis, the first vaccinations against
    hepatite A in the Republic and other activities can be considered
    among the significant achievements of the healthcare system.

    In his account on the existent problems and works implemented in the
    sphere of education and science in 2008 Vladik Khachatryan noted that
    at present comprehensive education is carried out in 230 state schools
    of the Republic among them 164 secondary, 50 eight-year and 16 primary
    schools, as well as in the Artsakh State University, in the military
    college adjunct to the NKR Defence Ministry and in other education
    centres. The state policy implemented in the sphere of comprehensive
    education was aimed at securing the obligatory eight-year education
    and the general secondary education of learners which proceeds through
    the gradual implementation of improvements.

    Last year a progress was particularly recorded in the sphere of
    school building. 63 comprehensive school buildings were reconstructed,
    58 new schools were built on charity means and State Budget funds.

    The Executive introduced changes in the temporary outlines of use of
    lands of Askeran region's Sghnakh and Ivanyan communities. Separate
    territories in the category of communal property were turned to lands
    of social construction significance.

    At the session the Executive affirmed the regulations on tutorship,
    established the "Mijaget" CSJO on the basis of "Dizak" newspaper of
    Hadrout regional administration.

    The Executive introduced changes in a number of formerly adopted
    decrees. One of them refers to the new order of passenger conveyance
    by taxis, which, with the corresponding additions, will come into
    effect since January 1, 2010.

    By the NKR Government decree licenses for implementing activities in
    the sphere of drugs and tranquilizers were rendered to the "Pharmatsia"
    CSJO and the "Tatev-Vika" LTD.

    * * *

    After the completion of the session, Prime Minister A.Haroutyunyan
    convoked a conference on agricultural issues with the Minister of
    Agriculture and heads of regional administrations of the Republic. The
    Prime Minister warned the participants against the troublesome
    situation created in a number of arable lands of the Republic
    connected with the reproduction of rodents. The situation in Hadrout
    and Martouni causes special anxiety. A.Haroutyunyan instructed to
    create an appropriate staff at the head of the Minister of Agriculture
    Armo Tsatryan. The staff is obliged to begin immediate rodent control
    and to prevent the spoilage of the expected crop. The Prime Minister
    expressed dissatisfaction towards the so far implemented arrangements
    and ordered those present to direct all the resources under their
    disposal against this agricultural disaster, the state will provide
    comprehensive support to the process.

    The issues concerning the current spring sowing works, repayment of
    overdue credits were touched upon at the conference as well. In this
    connection the Head of the Government assigned appropriate tasks.

    From: Emil Lazarian | Ararat NewsPress
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