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NKR Expects 13% Economic Growth In 2010

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  • NKR Expects 13% Economic Growth In 2010

    NKR EXPECTS 13% ECONOMIC GROWTH IN 2010

    /PanARMENIAN.Net/
    02.12.2009 11:15 GMT+04:00

    /PanARMENIAN.Net/ President of the Nagorno Karabakh Republic Bako
    Sahakyan delivered a speech on the 2010 draft budget at the meeting
    of the NKR Cabinet of Ministers on November 30.

    The President said,

    "Dear attendees, Today's meeting of the Cabinet is dedicated to the
    Nagorno Karabakh Republic's 2010 draft budget.

    Before going to the main topic I would like to note that economic
    policy carried out by the government has partially neutralized the
    impact of the global economic crisis. As a result in the current year
    economic growth in our country is forecast to be more than 13 percent.

    Our success is based both on the work of the government and on the
    prudent stance of our people who have not pressed the panic button
    unreasonably deteriorating the situation.

    However, I am far from believing that the crisis has finally
    retreated. In 2010 we should be also ready for possible unfavorable
    developments.

    I think that the most important subject of the 2010 draft budget
    discussions should be the adoption of a balanced and feasible state
    budget in a situation of global economic crisis following which the
    Cabinet of Ministers waging effective budgetary policy will guarantee
    its performance.

    The 2010 state budget must secure optimal realization of the following
    two main goals. First of all, it is necessary spend state resources
    effectively and sparingly, which is of special importance in a
    situation of limited state revenues and the need of carry out the
    planned programs in corpore and at a stated time.

    Secondly, the reduction of government spending should not hinder
    economic relations and growth in the country. On the contrary,
    expenditures of the state budget being incomes of population, state
    investments should increase gross demand thus stimulating economic
    growth in the republic.

    I would like to make several comments about the proposed state budget
    and its performance, which the Cabinet must take into consideration.

    - The most vulnerable strata of population should be protected from
    the negative external influence to the highest possible degree.

    Allowances and pensions of teachers, medical workers and all salaries
    allocated from the state budget should be kept at the increased level
    of 2009 and paid without any delays.

    - I request the Cabinet to keep in the spotlight problems the families
    of perished freedom fighters, missing in action and disable face,
    keep implementing projects providing social security to them, and
    from January 2010 set a monthly allowance for families with two or
    more members perished, 15 thousand drams for every perished individual.

    - Expenditures for maintaining state structures should be carried
    out in a very sparing manner. Budgetary allocations for property
    purchase should be made only in exceptional cases and for specialized
    machinery. Utilization of budgetary means should be carried out with
    high degree of financial discipline.

    - Economic policy should be waged in a way to exclude drastic upsurges
    of consumer prices, which is a serious social factor too.

    - It is necessary continue steps to create equal and favorable field
    for business in a consecutive manner. Measures carried out for this
    very purpose should be directed towards simplifying and improving tax
    administration, formation of favorable investment climate, expanding
    assistance to small and medium size entrepreneurship.

    I would like to use the opportunity of the 2010 draft budget discussion
    and touch upon some important issues.

    1. The formation of this budget is taking place in a time when
    the activity and behavior of any state structure or official,
    responsibility towards his duties have a significant importance for
    solving issues and problems our state and economy face.

    2. I would like to call the attention of all interested structures,
    first of all, the ministries of health, science and education on
    quality of child care in preschool institutions. Daily supervision
    should be exercised over the quality of food, living and sanitary
    conditions and their compliance with the existing norms.

    3. There are numerous problems with usage and protection of land
    as well as in exercising control over these processes, which have
    become a serious hindrance for economic development including for the
    formation and replenishment of budget. The large scale activities
    of the Cabinet and law enforcement organs to solve these issues,
    particularly to liquidate illegal land use should continue and be
    brought to a logical end.

    4. The need of optimizing state agencies has been underlined many
    times. However, presently we have around 140 state non-profit
    organizations, which are financed by the state budget. Their number
    is increasing and in the current year nine new such organizations
    were registered. I request the government to study the situation and
    make proposals to carry out serious reforms in this sphere.

    Dear attendees,

    The 2010 draft state budget of the Nagorno Karabakh Republic that
    is submitted for consideration of the government if adopted, will
    allow solving issued of socioeconomic development and securing normal
    life for our country. It has an emphasized social orientation and
    will contribute to amelioration of living conditions and rising life
    standards of our people.

    The draft budget will be soon submitted to the National Assembly. I
    am confident that there will be constructive, interesting and thorough
    discussions over this document of great importance, the implementation
    of which requires intense and painstaking work from everybody."
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