Tweet
IT'S TIME TO RESIGN
Arman Galoyan
Lragir.am News
http://www.lragir.am/engsrc/country23556.html
11:32:17 - 30/09/2011
Interview with Zoya Tadevosyan, Ph.D., economist, member of the
Armenian National Congress
Prime Minister Tigran Sargsyan mentioned in the meeting of government
after the approval of the state budget 2012 that we will get additional
finance from the IMF, World Bank and the EU on the condition that we
implement our programs. Is the external debt growing?
If the country is reduced to a situation when we have to borrow money
from international loan organizations to implement social programs,
it is time for the government to resign. It means that we are dealing
with a dead economic body, while the payment of pensions and benefits
at the expense of increasing the external debt will crash hope of
its reanimation. The primary steps which were to be taken by the
government was the reduction of the level of percentage, curbing
inflation, regulation of the exchange rate to the level enabling a
favorable climate for investments and making products made in Armenia
competitive. It was necessary to cut imports, juxtaposing it with the
policy of encouraging exports. I say "was" because nothing has been
done, and it is impossible to pay pensions and benefits once or twice
on foreign money and solve long-term issues. Moreover, recently the
French prime minister commended diversification of our economy. Let
alone the absurd that it is impossible to diversify the economy in
5 or 6 months. However, if we assume that it is possible, where are
the effects of diversification? Can you see growth of income, budget
revenues? Now we have two controversial "good news". How about truth?
The truth is that the consequences of empty words are destructive.
In the meeting of government, the chief of the State Revenue Committee
Gagik Khachatryan announced: "No such growth of tax revenues has
ever been estimated in the history of Armenia, especially in crisis
periods. We have very serious doubts that these taxes will be
collected." How shall we understand this?
If the country's economic situation is getting worse, taxes rise to
their upper limit, tax pressure increases. This situation is typical
of a crisis period. So, everything is worse than one can imagine.
During a financial crisis, the income of manufacturers and consumers
drops, the rate of unemployment drops, tax basis shrinks. What is
left to do? Increase tax pressure what is done.
In that case, why does Gagik Khachatryan make such a statement? Do
they confess that they are unable to do that or what?
Of course, they are. Nothing else can be concerned. I say the
economic body is dead, collecting taxes from a dead body is the same
as looting. Meanwhile, to ensure tax collections, the oligarchs must
pay the taxes, or in other words, they must pay taxes themselves.
Arman Galoyan
Lragir.am News
http://www.lragir.am/engsrc/country23556.html
11:32:17 - 30/09/2011
Interview with Zoya Tadevosyan, Ph.D., economist, member of the
Armenian National Congress
Prime Minister Tigran Sargsyan mentioned in the meeting of government
after the approval of the state budget 2012 that we will get additional
finance from the IMF, World Bank and the EU on the condition that we
implement our programs. Is the external debt growing?
If the country is reduced to a situation when we have to borrow money
from international loan organizations to implement social programs,
it is time for the government to resign. It means that we are dealing
with a dead economic body, while the payment of pensions and benefits
at the expense of increasing the external debt will crash hope of
its reanimation. The primary steps which were to be taken by the
government was the reduction of the level of percentage, curbing
inflation, regulation of the exchange rate to the level enabling a
favorable climate for investments and making products made in Armenia
competitive. It was necessary to cut imports, juxtaposing it with the
policy of encouraging exports. I say "was" because nothing has been
done, and it is impossible to pay pensions and benefits once or twice
on foreign money and solve long-term issues. Moreover, recently the
French prime minister commended diversification of our economy. Let
alone the absurd that it is impossible to diversify the economy in
5 or 6 months. However, if we assume that it is possible, where are
the effects of diversification? Can you see growth of income, budget
revenues? Now we have two controversial "good news". How about truth?
The truth is that the consequences of empty words are destructive.
In the meeting of government, the chief of the State Revenue Committee
Gagik Khachatryan announced: "No such growth of tax revenues has
ever been estimated in the history of Armenia, especially in crisis
periods. We have very serious doubts that these taxes will be
collected." How shall we understand this?
If the country's economic situation is getting worse, taxes rise to
their upper limit, tax pressure increases. This situation is typical
of a crisis period. So, everything is worse than one can imagine.
During a financial crisis, the income of manufacturers and consumers
drops, the rate of unemployment drops, tax basis shrinks. What is
left to do? Increase tax pressure what is done.
In that case, why does Gagik Khachatryan make such a statement? Do
they confess that they are unable to do that or what?
Of course, they are. Nothing else can be concerned. I say the
economic body is dead, collecting taxes from a dead body is the same
as looting. Meanwhile, to ensure tax collections, the oligarchs must
pay the taxes, or in other words, they must pay taxes themselves.