Wednesday, 17 February 2016
Ministry of Finance 2015 Performance Report Summarized
Chaired by Prime Minister Hovik Abrahamyan, the Cabinet discussed the annual performance report of the Ministry of Finance of the Republic of Armenia, which covered the Ministry’s key activities, its compliance with the Government’s action plan, priority tasks and estimated performance in 2015.
RA Minister of Finance Gagik Khachatryan noted that in 2015, fiscal policy was aimed at maintaining macroeconomic stability. Special importance was attached to growth-fostering policies. According to the Minister, unlike other countries in the region, during the previous year Armenia managed to ensure the necessary financial flows without any deviations.
Gagik Khachatryan reported that the State budget tax revenue rose to AMD 1 trillion 65 billion in 2015 (0.3% more than in 2014). State budget expenditure amounted to AMD 1 trillion 253 billion, which is 10.6% more than in 2014.
The Minister noted that in general, the fiscal and monetary policy had an expansionary effect on the overall demand in the reporting period, facilitating the execution of the state budget amid external shocks. A new software module was introduced last year with the aim of exchanging information and recording customs duties in the framework of cooperation between the EAEC Member States.
Efforts continued to improve tax and customs legislation in a bid to comply with the Government’s program of improving the business environment, reducing the shadow economy, as well as building capacity in the tax and customs systems. A preliminary draft of the new Tax Code has been developed.
Gagik Khachatryan said efforts continued toward making legislative changes aimed at attracting investment and improving the business environment. The Minister reported that in the period under review specific actions were carried out aimed at the identification of unmarked goods on the domestic consumer market, as well as reveal violations of the labeling rules, as a result of which some 13 thousand goods without marking or labeling were detected.
In 2015, at the request of law enforcement agencies, 604 checks aimed at ascertaining the relationship with the state budget were implemented, as a result of which AMD12.7 billion-worth liabilities were exposed. New modules were introduced into the Taxpayer-3 software system.
The Prime Minister praised the work of the Ministry, noting that through combined effort the Government of the Republic of Armenia managed to overcome the difficulties arising from geopolitical realities in 2015.
Noting the importance of achieving better effectiveness in planned expenditure, the Premier said that that the Government will implement specific steps to this end.
At the same time, Hovik Abrahamyan noted that serious programs have been developed for 2016 and the Government will be move ahead with joint effort.
