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  • Budget receipts will double

    Azat Artsakh - Republic of Nagorno Karabakh (NKR)
    May 1, 2004

    BUDGET RECEIPTS WILL DOUBLE=20

    At the April 27 meeting of the NKR government the bill "On confirming
    the annual account on execution of the NKR state budget of 2003" was
    discussed. In this reference NKR prime minister Anoushavan Danielian
    mentioned that the government had set an aim to maintain high rates of
    economic development and provided steep economic growth in 2003. "The
    analysis of the macroeconomic rates provided by the NKR National
    Statistics Service allows concluding that the year 2003 was crucial in
    the economic development of NKR," said the head of the government.
    "In 2003 the growth of the GDP in the republic totaled 19.8 percent.
    The dynamics of the growth of industrial production totaled 43.8
    percent, electricity excluding 52.3 percent. The growth of fabrication
    of consumption products totaled 40.3 percent. The growth of the gross
    agricultural output against the previous year totaled 25.7
    percent. The growth of the volume of implemented capital building
    totaled 29.1 percent. The cash incomes of the populations increased by
    17.1 percent, the expenditure by 18.1 percent." The results of growing
    volume of external circulation of commodities are also satisfying. In
    2003 the external circulation of commodities increased by 34.5
    percent, including the growth of import by 13 percent and increase of
    export 2.5 times. The comparative dynamics of growth of agricultural
    output and production also testify to the stable economic
    development. Thus, after 11 percent decline of production in 2000
    production increased by 16.8 percent, in 2001 by 21.6 percent, in 2002
    by 36.2 percent and in 2003 43.8 percent. Gross agricultural output in
    2001 totaled 13 billion AM drams, in 2002 15 billion drams, in 2003 21
    billion drams maintaining growth by 25.7 percent. The prime minister
    drew attention to the comparison of export rates. If in 2000 the
    volume of export totaled only 2 million dollars, in 2001 it increased
    2.6 times and totaled about 5.4 million dollars. In 2002 export
    increased 2.5 times totaling 14 million dollars, in 2001 2.1 times
    totaling 17 million dollars. 2003 was crucial also by an unprecedented
    growth of own budget receipts by 41.8 percent, including from profit
    tax by 25.6 percent and income tax by 34.6 percent. Economic reforms
    implemented by the government in recent years, relieving of the tax
    load, liberal market economy, active involvement of investors promoted
    the development of the private sector, which favoured the fundamental
    qualitative and structural changes in the GDP of the republic. If in
    2000 production of the private sector totaled 25 percent of the
    production of the republic, currently the private sector provides 75
    percent of the production, which testifies to fundamental changes in
    the change of the economic profile of the republic. "I have to
    emphasize that being crucial in the sense of growth of macroeconomic
    rates, 2003 is a starting point for qualitative improvement and stable
    development in the upcoming years," said Anoushavan Danielian. "That
    is to say, fundamental conditions have been created for shifting the
    economy to a new level. However, nobody should have illusions that we
    have overcome all the difficulties. On the contrary, I think that we
    will have to face real difficulties in the future. This is not a
    popular expression but the characterization of the economic situation
    of the country." The prime minister mentioned that despite the high
    rates of economic growth, the country=E2=80=99s economic development
    should be characterized as rehabilitative. "It is a phenomenon known
    to world economy but uncommon and studied little. I think this is a
    separate topic of discussion, for which I will give more comments in
    the future. However, one thing is obvious: rehabilitative growth has a
    dangerous character. As a rule, according to E. Gayday, it has a
    so-called fading nature. The high rates of economic development drop
    gradually, which later becomes a serious problem for the
    country=E2=80=99s economy." At the same time the head of the executive
    added that the government will continue improving the programs, making
    reforms, hence also the rates of economic growth long-lasting and
    stable. Here the scientifically grounded direction of main
    macroeconomic rates and means of implementation of those rates are
    shifted to the foreground. That is to say, although the stable
    maintenance of high rates of development is difficult, it is not
    impossible. Summing up A. Danielian mentioned, "The current rates of
    economic development allow to confirm that the GDP, as we have
    planned, will grow 5 times. In 2004 the volume of own budget receipts
    will double against 2002. In 2004 we must provide growth of production
    1.5 times. Every year salaries and pensions will be raised in the
    upcoming two years the average salary will total 50-55 thousand drams,
    the minimum salary will double."=20

    AA=20
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