The Government of the Republic of Armenia

Ministerial committees on territorial development, nature protection, financial-economic, social, State and legal affairs met at the Office of Government, chaired by head of these committees, RA Prime Minister Tigran Sargsyan. Established with a view to submit findings on policy development and legal act drafting matters, these committees are supposed to discuss and prepare draft decrees for the government's approval.

In particular, today's meeting discussed draft resolutions on the training of public finance management specialists, strategy on introduction of continued training and qualification systems, establishment of a unified record form and keeping guidelines for registration of corporate entities and physical persons by tax authorities, reform strategy for the procurements system. Among over a dozen of items bearing on the financial-economic sphere, the committee reviewed the draft programs concerning pension system reforms, Armenia's business environment improvements and the draft concept note on business and investment policy referred to as "Center of Excellence."

Prior to proceeding to the discussion of this item, the Prime Minister described the work done by the government in this field over the past 3 years. He mentioned that the inter-departmental commission by the government involved representatives from all concerned ministries and the CBA. Serious backing has been received from the World Bank and the USAID, tens of seminars and public discussions have been organized to define the conceptual approaches regarding the model to adopt in Armenia. According to the head of government, an arrangement has already been reached over such model, based on the worldwide experience in pension reforms, which provides the possibility of combining the introduction of the funded system and the principle of welfare solidarity. In the Prime Minister's words, tens of versions have been discussed so as to select the most suitable model for Armenia. He said that on the one hand, the government has to meet the commitment of raising the level of pensions by the year 2012 to reach the 1.5-fold of the poverty threshold and, on the other hand, it will have to carry into effect the concept on introduction of the funded pensions system. The objective of these efforts is to ensure a decent life for our citizens after they retire to pension. "We met with many problems associated with conceptual principles over the past 3 years that we were able to clarify as a result of discussions held with experts and the representatives of the World Bank and the IMF. Today the chief concept is already prepared. Of course, a number of technical issues still need addressing. But what matters most is to what extent we are prepared to introduce this system, considering the current status of infrastructures, the administrative mechanisms, the flat tax question, namely whether there has to be a single welfare tax or there will be separate income and social taxes etc. I feel that these issues must be voiced and discussed today if we are to record progress on this path," Tigran Sargsyan said.

During the discussion of the issue of business environment improvement, the need for reform in this field has been mentioned. "Agreement has been reached over all key points. An action plan and a time-table have been specified, aimed at improving Armenia's record in this field," the Prime Minister noted in conclusion of the agenda item discussion.