Today's meeting of the Cabinet, as you know, is dedicated to the Nagorno Karabagh Republic's 2010 state draft budget.
Before going to the main topic I would like to note that economic policy carried out by the government has partially neutralized the impact of the global economic crisis. As a result in the current year economic growth in our country is forecast to be more than 13 percent. Our success is based both on the work of the government and on the prudent stance of our people who have not pressed the panic button unreasonably deteriorating the situation.
However, I am far from believing that the crisis has finally retreated. In 2010 we should be also ready for possible unfavorable developments.
I think that the most important subject of the 2010 state draft budget discussions should be the adoption of a balanced and feasible state budget in a situation of global economic crisis following which the Cabinet of Ministers waging effective budgetary policy will guarantee its performance.
The 2010 state budget must secure optimal realization of the following two main goals. First of all, it is necessary spend state resources effectively and sparingly, which is of special importance in a situation of limited state revenues and the need of carry out the planned programs in corpore and at a stated time.
Secondly, the reduction of government spending should not hinder economic relations and growth in the country. On the contrary, expenditures of the state budget being incomes of population, state investments should increase gross demand thus stimulating economic growth in the republic.
I would like to make several comments about the proposed state budget and its performance, which the Cabinet must take into consideration.
- The most vulnerable strata of population should be protected from the negative external influence to the highest possible degree. Allowances and pensions of teachers, medical workers and all salaries allocated from the state budget should be kept at the increased level of 2009 and paid without any delays.
- I request the Cabinet to keep in the spotlight problems the families of perished freedom fighters, missing in action and disable face, keep implementing projects providing social security to them, and from January 2010 set a monthly allowance for families with two or more members perished, 15 thousand drams for every perished individual.
- Expenditures for maintaining state structures should be carried out in a very spering manner. Budgetary allocations for property purchase should be made only in exceptional cases and for specialized machinery. Utilization of budgetary means should be carried out with high degree of financial discipline.
- Economic policy should be waged in a way to exclude drastic upsurges of consumer prices, which is a serious social factor too.
- It is necessary continue steps to create equal and favorable field for business in a consecutive manner. Measures carried out for this very purpose should be directed towards simplifying and improving tax administration, formation of favorable investment climate, expanding assistance to small and medium size entrepreneurship.
I would like to use the opportunity of the 2010 draft state budget discussion and touch upon some important issues.
1. The formation of this budget is taking place in a time when the activity and behavior of any state structure or official, responsibility towards his duties have a significant importance for solving issues and problems our state and economy face.
2. I would like to call the attention of all interested structures, first of all, the ministries of health, science and education on quality of child care in preschool institutions. Daily supervision should be exercised over the quality of food, living and sanitary conditions and their compliance with the existing norms.
3. There are numerous problems with usage and protection of land as well as in exercising control over these processes, which have become a serious hindrance for economic development including for the formation and replenishment of budget. The large scale activities of the Cabinet and law enforcement organs to solve these issues, particularly to liquidate illegal land use should continue and be brought to a logical end.
4. The need of optimizing state organs has been underlined many times. However, today we have around 140 state non profit organizations, which are financed by the state budget. Their number is increasing and in the current year nine new such organizations were registered. I request the government to study the situation and make proposals to carry out serious reforms in this sphere.
The 2010 draft state budget of the Nagorno Karabagh Republic that is submitted for consideration of the government if adopted, will allow solving issued of socioeconomic development and securing normal life for our country. It has an emphasized social orientation and will contribute to amelioration of living conditions and rising life standards of our people.
The draft budget will be soon submitted to the National Assembly. I am confident that there will be constructive, interesting and thorough discussions over this document of great importance, the implementation of which requires intense and painstaking work from everybody.
November 30, 2009.