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Official News

Thursday, 30 December 2010

Qualitatively new post-crisis world




The government met in a regular sitting, chaired by Prime Minister Tigran Sargsyan. Before proceeding to the agenda of the 51st cabinet sitting, the Prime Minister stated the main economic indicators of 2010 and summed up the government’s activity for the past year (Tigran Sargsyan’s introductory remarks are available separately).

The government passed about a dozen of decisions aimed at tax field improvements.

A previous decision was amended to reduce the time and costs needed for economic entity licensing purposes by applying the online mode of documentation. According to the Prime Minister, this is a true New Year’s gift for Armenian exporters. The 41% growth recorded last year in this field should be maintained.

The government decided that starting from the year 2011, the Ministry of Labor and Social Affairs will implement a pension reform support program using resources available from the treasury. Prime Minister Tigran Sargsyan said the rationale behind allocating welfare benefits will be modified radically. It is not a secret that benefits reduce the incentives for work. Therefore, other mechanisms will be used to cerate such incentives. The government decided to cancel the income tax levied on animal husbandry. While the State will incur a greater social burden, the agricultural sector will be on the winning side.

The government amended a previous decision to provide for undisrupted supply of medicaments for those sick persons suffering from diabetes.

In accordance with the legislation of the Republic of Armenia and the presidential decree, the government decided to set up a State administrative entity entitled “State Food Security Service Staff” by approving its by-laws and organization. Prime Minister Tigran Sargsyan said that the streamlining of the field of food security is a key program implemented jointly with the European Union which has been subject to expertise. The government was said to embrace new working conditions starting next year: the ministries will be entrusted with policy responsibilities instead of spending functions. As this mechanism is applied for the time in Armenia, it will have to be amended from time to time.

The meeting approved the frat amendments to the law on the Pan-Armenian Bank to bring it into conformity with its conceptual approaches. According to the Prime Minister, the Bank is supposed to promote economic development and exports in Armenia as it has a director general, a managing board and supportive legislation.

As he wrapped up the meeting, the Prime Minister extended his New Year’s congratulations by noting that while the year 2010 was full of challenges, the government managed to ensure economic growth. Tigran Sargsyan further said that the government will face as many problems next year. In conclusion, he wished everybody robust health, happiness, homely love and solidarity.
 

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