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  • Did They Promise Money To Prime Minister?

    DID THEY PROMISE MONEY TO PRIME MINISTER?
    Hakob Badalyan

    Lragir.am News
    http://www.lragir.am/engsrc/comments23557.html
    12:31:08 - 30/09/2011

    After his visit to Brussels, Prime Minister Tigran Sargsyan announced
    about a new reform during the meeting of government on September 29.

    According to him, a salary reform will be carried in Armenia.

    According to him, in 2012 the civil servants will be provided with
    a social payment package. They can thereby cover medical expenses,
    mortgage loans, payment of tuition of fees of students in family
    through insurance policies.

    "All these events which require additional funding force us to change
    the tax-GDP ratio, expect additional finance from the World Bank and
    the EU," Tigran Sargsyan announced.

    It is clear that in the pre-election period the salary reform is
    highly important for the government. The system of civil service is
    the administrative resource which must work for the government in
    the elections, therefore this resource needs to be motivated. Without
    this administrative resource, it will be impossible to get a desirable
    result for the government.

    However, it is also obvious that the issue itself is highly important.

    The salaries in civil service are too low and therefore not attractive
    for highly-qualified specialists. Were the salaries higher, the
    quality of employees of the government agencies may rise which may
    have a significant influence on the quality of service offered to
    the citizens.

    Although, the size of salary is important but not deciding. Evidence
    to this is the judicial system. The salaries of judges were boosted
    significantly with a view to reduce corruption. However, the salaries
    did not trigger improvement of the quality of the judicial system. The
    system depends on the executive government.

    Nevertheless, the problem is on what money their salaries will be
    boosted. If the EU or international financial organizations have
    promised money, the situation can be different and reassuring. The
    point is that they will demand results in return for the money. In
    other words, if they give money to boost the salary of civil servants
    of Armenia, they will demand improvement of the level of their work
    and compliance with international practice.

    In this case, not only a civil servant will benefit from boost of
    salary and the government waiting for their "shadow" activities,
    but also the society.

    However, if the government is preparing to boost the salaries
    of government administration at the expense of boosting taxes in
    Armenia, there is serious reason for concern. No doubt, if the taxes
    are collected from the major companies which do not pay their taxes
    adequately, a lot can be ensured. However, judging by the form and
    content of the so-called "tax reforms", it seems impossible that tax
    collections will be boosted at the expense of major businesses.

    However, it is much more realistic that this burden will fall on SMEs.

    And from major businesses, they can "press" only those businessmen
    whose property is subject to redistribution or who need some chiding
    out of political reasons.




    From: A. Papazian
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