Saturday, 26 June 2010
The National Competitiveness Fund Board of Trustees holds its 16th session
Today the 16th session of National Competitiveness Fund Board of Trustees was held in the Office of Government. BoT chairman, RA Prime Minister Tigran Sargsyan addressed the session.
The Prime Minister presented GDP-related statistical data for the past 5 months. He noted that the recorded 8.8% growth was caused by 3 main factors. First of all, Armenia’s economic status was improved as the global economy continued upwards: recovery affected all the spheres of economy, including agriculture – 1%, construction – 12% which grew twofold in the period from May to April. Unemployment is down and wages go up in both the public and private sectors.
As the second important factor, the head of government singled out the government’s anti-crisis measures on the sidelines of its expansionary policies aimed at shaping a favorable environment for small and medium-size businesses, inclusive of legislative amendments, lower tax reporting requirements and grater fiscal privileges offered top taxpayers, the introduction of the institute of fixed payments and simplified accounting rules. In this context, the Prime Minister stressed the importance of loan-financed road building, irrigation and water supply activities.
Tigran Sargsyan presented the breakdown of fiscal receipts for the first six months of 2010. He mentioned that they make stand at about AMD 270bn which 11.6% above the target: “This means we will manage to maintain macroeconomic stability by bringing the budget gap/GDP ratio down to nearly 4.5 % from the planned 6.5 %.”
According to the Prime Minister, the third factor is the exchange rate stability achieved due to the Central Bank’s balanced monetary policy which had a favorable impact on prices. In this connection, Tigran Sargsyan stated in part: “We are ushering in a stage of deflation: we will face a deflation over the next few months, and 5-6% seems to be the most realistic annual index in this respect.”
Prioritizing the pension reform initiated by his government, the head of government said: “In the first reading, the National Assembly adopted a sizeable package of legislative amendments covering about 50 legislative acts, including 10 key laws. The mandatory funded pension scheme is being introduced in the Republic of Armenia, with voluntary pension funds set to start operating on January 1, 2011. A uniform welfare tax will be applicable as of 2013 implying a single legislation and enforcement mechanisms for social contributions and income tax. In 2014, the mandatory funded pension system will be effective to provide that all active citizens under 40 will have to contribute 5 % of their income for the old age.”
Concerning macroeconomic stability and financial market development, Tigran Sargsyan emphasized the importance of the passage in the first reading by the National Assembly of the law on public services which is supposed to ensure transparency in the activities our ministers and MPs. In particular, a single e-registry is due to be established to host income statements from 500 public officials.
National Competitiveness Fund Executive Director Bekor Papazyan reported back the status of those programs implemented in the spheres of tourism, public health services and network accessibility. The meeting discussed the possibility of having an excellence center of oncology and developing an up-to-date traveling product in Armenia. The board members were presented the initiative of establishing steering committees for each target area and launching NCF-supported public outreach campaigns in a number of countries during 2010.
