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Armenia's 2015 state budget, another failure

26 November 2014 [11:54] - TODAY.AZ


By Mushvig Mehdiyev

Armenia's state budget for 2015 remains to be in a hot seat over some controversial points that spark mixed reactions to it.
Bagrat Asatryan, ex-Head of Armenia's Central Bank, said the budget for the next year was the remnant of the mid-term program initiated by the previous government.
"The document does not reflect the realities connected with the membership of the country at the Eurasian Economic Union and existing economic situation in Armenia," Astryan added. "It clearly shows that the authorities aim to wash their dirty hands."

Focusing mostly on social and cultural domains expenditures is the key goal of Armenia's 2015 state budget. Prime Minister Hovik Abrahamyan said about 21.4 percent of the budget would also be spent for defense, maintenance of public order and national security. It proves that the government targets to tackle a mountain of unresolved problems in various fields, as well as to improve Armenia's defense capabilities.
Maximum amount of the budget expenditures is nearly 57 percent, while roughly 22.8 percent of the overall budget will be allocated to maintain the police and judicial system along with increased expenditures for external debts, according to Asatryan.
"Providing expenditures for legislative and executive powers from the budget is a positive step. But I don't think it will eradicate the bribery in the main governmental bodies in Armenia," he said.
Asatrayn went on to say that the budget needs thorough revision given the inadequate articles in the document, which are inversely proportional to the economic condition amid devaluation of the ruble and Armenia's integration into the EEU.

Armenia's current condition requires immediate measures to forestall the economic decline. Numerous social problems in the country remain the same due to fruitless domestic policy of the government. The state budget provides no special measures to improve the condition of poor residents amid the National Statistics Service's report on a 32 percent of poverty rate in the country.
Asatryan annulled the government's reports about the social-oriented image of the budget, saying the budget bears no sign of social involvement. "Socially vulnerable people will be provided with $92 social aid. Can it be a social-oriented budget?" said Asatryan, adding that the expenditures to maintain governmental bodies have considerably increased.
The former head of the Central Bank noted that a large increase in budget expenditures is a crime against Armenians as the statesmen drive luxurious cars, use expensive mobile phones. "The state budget for 2015 is inadequate amid the realities in the country. The chance of succeeding with that budget is equal to zero," Asatryan said.
Money cannot solve every problem, but it can overcome numerous challenges in the modern world. But the power of money is weakening against the huge problems almost in every field. Economy is falling, politics is in deadlock, industry is barely surviving, social life is facing its hardest ever days and the budget is out of strength to tackle these problems. So, Armenia needs a budget equal to Germany's $4 trillion GDP to get rid of its alarming challenges.

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