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DID THEY PROMISE MONEY TO PRIME MINISTER?
Hakob Badalyan
Lragir.am News
http://www.lragir.am/engsrc/comments23557.html
12:31:08 - 30/09/2011
After his visit to Brussels, Prime Minister Tigran Sargsyan announced
about a new reform during the meeting of government on September 29.
According to him, a salary reform will be carried in Armenia.
According to him, in 2012 the civil servants will be provided with
a social payment package. They can thereby cover medical expenses,
mortgage loans, payment of tuition of fees of students in family
through insurance policies.
"All these events which require additional funding force us to change
the tax-GDP ratio, expect additional finance from the World Bank and
the EU," Tigran Sargsyan announced.
It is clear that in the pre-election period the salary reform is
highly important for the government. The system of civil service is
the administrative resource which must work for the government in
the elections, therefore this resource needs to be motivated. Without
this administrative resource, it will be impossible to get a desirable
result for the government.
However, it is also obvious that the issue itself is highly important.
The salaries in civil service are too low and therefore not attractive
for highly-qualified specialists. Were the salaries higher, the
quality of employees of the government agencies may rise which may
have a significant influence on the quality of service offered to
the citizens.
Although, the size of salary is important but not deciding. Evidence
to this is the judicial system. The salaries of judges were boosted
significantly with a view to reduce corruption. However, the salaries
did not trigger improvement of the quality of the judicial system. The
system depends on the executive government.
Nevertheless, the problem is on what money their salaries will be
boosted. If the EU or international financial organizations have
promised money, the situation can be different and reassuring. The
point is that they will demand results in return for the money. In
other words, if they give money to boost the salary of civil servants
of Armenia, they will demand improvement of the level of their work
and compliance with international practice.
In this case, not only a civil servant will benefit from boost of
salary and the government waiting for their "shadow" activities,
but also the society.
However, if the government is preparing to boost the salaries
of government administration at the expense of boosting taxes in
Armenia, there is serious reason for concern. No doubt, if the taxes
are collected from the major companies which do not pay their taxes
adequately, a lot can be ensured. However, judging by the form and
content of the so-called "tax reforms", it seems impossible that tax
collections will be boosted at the expense of major businesses.
However, it is much more realistic that this burden will fall on SMEs.
And from major businesses, they can "press" only those businessmen
whose property is subject to redistribution or who need some chiding
out of political reasons.
From: A. Papazian
Hakob Badalyan
Lragir.am News
http://www.lragir.am/engsrc/comments23557.html
12:31:08 - 30/09/2011
After his visit to Brussels, Prime Minister Tigran Sargsyan announced
about a new reform during the meeting of government on September 29.
According to him, a salary reform will be carried in Armenia.
According to him, in 2012 the civil servants will be provided with
a social payment package. They can thereby cover medical expenses,
mortgage loans, payment of tuition of fees of students in family
through insurance policies.
"All these events which require additional funding force us to change
the tax-GDP ratio, expect additional finance from the World Bank and
the EU," Tigran Sargsyan announced.
It is clear that in the pre-election period the salary reform is
highly important for the government. The system of civil service is
the administrative resource which must work for the government in
the elections, therefore this resource needs to be motivated. Without
this administrative resource, it will be impossible to get a desirable
result for the government.
However, it is also obvious that the issue itself is highly important.
The salaries in civil service are too low and therefore not attractive
for highly-qualified specialists. Were the salaries higher, the
quality of employees of the government agencies may rise which may
have a significant influence on the quality of service offered to
the citizens.
Although, the size of salary is important but not deciding. Evidence
to this is the judicial system. The salaries of judges were boosted
significantly with a view to reduce corruption. However, the salaries
did not trigger improvement of the quality of the judicial system. The
system depends on the executive government.
Nevertheless, the problem is on what money their salaries will be
boosted. If the EU or international financial organizations have
promised money, the situation can be different and reassuring. The
point is that they will demand results in return for the money. In
other words, if they give money to boost the salary of civil servants
of Armenia, they will demand improvement of the level of their work
and compliance with international practice.
In this case, not only a civil servant will benefit from boost of
salary and the government waiting for their "shadow" activities,
but also the society.
However, if the government is preparing to boost the salaries
of government administration at the expense of boosting taxes in
Armenia, there is serious reason for concern. No doubt, if the taxes
are collected from the major companies which do not pay their taxes
adequately, a lot can be ensured. However, judging by the form and
content of the so-called "tax reforms", it seems impossible that tax
collections will be boosted at the expense of major businesses.
However, it is much more realistic that this burden will fall on SMEs.
And from major businesses, they can "press" only those businessmen
whose property is subject to redistribution or who need some chiding
out of political reasons.
From: A. Papazian