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NKR: A. Danielian: Oligarchs Mustn't Seize Land From Farmers

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  • NKR: A. Danielian: Oligarchs Mustn't Seize Land From Farmers

    A. DANIELIAN: OLIGARCHS MUSTN'T SEIZE LAND FROM FARMERS

    Azat Artsakh, Nagorno Karabakh Republic [NKR]
    02 May 2006

    On April 26 the meeting of the NKR government, conducted by Prime
    Minister Anoushavan Danielian, took place. Minister of Finance
    and Economy Spartak Tevossian spoke about the annual report
    on the performance of NKR State Budget 2005. He offered some
    macroeconomic indices, describing the social and economic state of
    the country. According to the minister, the GDP totaled 51.4 billion
    drams in 2005. In 2005 the average exchange rate of the dollar was
    457.8 drams (compared with 532.1 drams in 2004), the exchange rate of
    the euro was 570.7 drams (compared with 660.7 drams in 2004). Gross
    agricultural output totaled 21.1 billion drams, increasing by 5.6
    percent. The volume of building on all the sources of funding totaled
    12.6 billion drams, growing by 37.8 percent compared with 2004. Foreign
    trade in 2005 totaled 133.1 million US dollars (growing by 15.2 percent
    compared with 2004). Last year wholesale trade in the country reached
    42.7 billion drams, services 5.4 billion drams. In addition, the cash
    income of the population mounted to 51.8 billion drams (growing by
    20.3 percent), and expenses totaled 49.2 billion drams. Over 3400
    jobs were created in 2005 in different branches of the economy. The
    average salary totaled 51 127 drams, compared with 41 170 drams in
    2004. In 2005 the average retirement benefit totaled 13 440 drams,
    growing by 30 percent. Spartak Tevossian says these achievements were
    enabled by the steep growth of budget receipts.

    The budget receipts for 2005 were estimated at 6485 million drams, the
    factual receipts totaled 6570.1 million drams, increasing by 1979.9
    million compared with the same period in 2004. Return on tax totaled
    5010.3 million drams instead of the estimated 4660 million. It is
    notable that budget expenses totaled 20 billion 246 million drams,
    which is 94.5 percent of the expenses, estimated at 21424.6 million
    drams. Making his observations regarding the bill, Prime Minister
    Anoushavan Danielian assessed the report as satisfactory, adding that
    it contains specific analyses and facts, and is the best draft, in his
    opinion. He viewed the country's achievements in 2005 in the context
    of economic reforms. "The mere fact that the GDP almost doubled in
    four years and the growth of receipts did not go below 40 percent,
    are eloquent indices," said the prime minister. "It is enough to
    state that our own receipts of 1 billion 600 million increased up
    to 9 billion. The macroeconomic indices suggest that maintenance of
    high rates of growth will enable expanding the volume of agriculture
    and industry in 3 or 4 years. And the implementation of short-term,
    medium-term and long-term programmes can be an important condition
    for progress." Emphasizing the importance of growth of the GDP for the
    development of different branches of the economy, the prime minister
    said it is impossible to deny the 43.1 percent growth of the county's
    own receipts, however, the performance of the state budget was 102.1
    percent, which should make the members of government think. Considering
    the tendency of high risk (although it had been taken into account),
    Mr. Danielian said, "such a growth is possible in three or four
    years at best," whereas the estimates are not fulfilled in all the
    branches. Touching upon inaccuracy in the performance of community
    budgets, he criticized the heads of administrations. The prime
    minister said that failure to control and the conformist attitude
    towards those who cause the failure of community budgets, the head of
    the regional administration "encourages this style of work of heads
    of communities," and the latter do not feel obliged, instead they
    keep soliciting the government for subsidies. "It is necessary to
    dismiss such people and draw conclusions," stated the prime minister.

    During the meeting of the government Prime Minister Anoushavan
    Danielian proposed to set up a state committee, led by Deputy Prime
    Minister Ararat Danielian, to coordinate medium-term and long-term
    programmes. Since the volume of building in the republic is sure to
    grow year by year, whereas a considerable part of building materials
    is imported, the prime minister instructed the minister of city
    planning, territorial management and development of infrastructures
    to work out proposals on developing production of building materials
    in the country, that would allow cutting the cost of building. Prime
    Minister Anoushavan Danielian expressed concern about the slow rate
    of reforms in agriculture. Emphasizing the importance of creating
    a system of irrigation to guarantee high yield of arable crops,
    Anoushavan Danielian said, "We must direct our efforts towards
    expanding irrigated areas. We must not allow oligarchs to seize the
    land from farmers just for a song and leave them in confusion.

    Farmers must feel protected by the state and have full control of
    their land."

    >>From among about thirty documents decisions were made on issues
    of environment and water resources. In particular, the government
    adopted an order on making the list of animals and plants in NKR,
    which are on the verge of extinction.

    The government adopted a set of decisions on the sale of chemicals
    and fertilizers, sale of weapon, bullets, explosives, as well as on
    privatization of state and community property. The bill on the annual
    report of 2005 on performance of State Property Programme 2004-2006
    was adopted.
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