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ARMENIA'S 2012 DRAFT BUDGET DANGEROUS - EXPERT
Tert.am
19.10.11
Armenia's 2012 state budget is not ambitious, which means it is a
dangerous document, the economist Vahagn Khachatryan, a member of
the opposition Armenian National Congress (ANC), told journalists
in Yerevan.
He does not see the Armenian government's willingness to improve
anything. This is one more budget the government drafted only to submit
it to Parliament, he added. It is a paradox, but the draft budget,
with revenues AMD 101bn more than this year's budget revenues, which
might be used for raising pensions, wages and allowances, is in fact
a dangerous initiative.
"The government is the first to assess the Armenian economy's
potential. Especially since various international agencies indicate
that shadow economy constitutes 50 to 70 percent in Armenia," the
expert said. "Our economy is absurd due to the fact that numerous
importers can clear their goods by indicating prices that are two or
three times as low as international prices," Khachatryan said.
He is concerned over how the government is going to ensure budget
revenues. "President Serzh Sargsyan must gather all the oligarchs and
say to them, 'Stop, from now on we are going to work on the basis of
invoices. You must clear the goods at the price you purchase them.'
They should change the rules of the game, but they are increasing
the budget without doing it. So the question is: at what expense? No
political decision has been made, so small and medium businesses are
going to be pressurized once again," Khachatryan said.
"If this budget is translated into reality, it will affect businesses,"
the expert said. The national debt will be increased to cover the
budget deficit," Khachatryan said. He is concerned over Armenia's
external debt.
The expert noted that the tax package being drafted is, first of all,
a blow on high-paid employees. This measure will only boost shadow
economy. "If the law is for everyone, I do not object to it. But
if it will only apply to economic entities that are honestly paying
their taxes, I do object to this initiative," Khachatryan said.
Tert.am
19.10.11
Armenia's 2012 state budget is not ambitious, which means it is a
dangerous document, the economist Vahagn Khachatryan, a member of
the opposition Armenian National Congress (ANC), told journalists
in Yerevan.
He does not see the Armenian government's willingness to improve
anything. This is one more budget the government drafted only to submit
it to Parliament, he added. It is a paradox, but the draft budget,
with revenues AMD 101bn more than this year's budget revenues, which
might be used for raising pensions, wages and allowances, is in fact
a dangerous initiative.
"The government is the first to assess the Armenian economy's
potential. Especially since various international agencies indicate
that shadow economy constitutes 50 to 70 percent in Armenia," the
expert said. "Our economy is absurd due to the fact that numerous
importers can clear their goods by indicating prices that are two or
three times as low as international prices," Khachatryan said.
He is concerned over how the government is going to ensure budget
revenues. "President Serzh Sargsyan must gather all the oligarchs and
say to them, 'Stop, from now on we are going to work on the basis of
invoices. You must clear the goods at the price you purchase them.'
They should change the rules of the game, but they are increasing
the budget without doing it. So the question is: at what expense? No
political decision has been made, so small and medium businesses are
going to be pressurized once again," Khachatryan said.
"If this budget is translated into reality, it will affect businesses,"
the expert said. The national debt will be increased to cover the
budget deficit," Khachatryan said. He is concerned over Armenia's
external debt.
The expert noted that the tax package being drafted is, first of all,
a blow on high-paid employees. This measure will only boost shadow
economy. "If the law is for everyone, I do not object to it. But
if it will only apply to economic entities that are honestly paying
their taxes, I do object to this initiative," Khachatryan said.