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Armenian Budget For Officials' Well-Being

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  • Armenian Budget For Officials' Well-Being

    ARMENIAN BUDGET FOR OFFICIALS' WELL-BEING

    news.am
    April 30 2010
    Armenia

    The RA Ministry of Finance has released a budget report on for the
    1st quarter of 2010.

    According to the report, the budget revenues totaled 164.1bn AMD (7.2%
    more than the government-budgeted amount). On-budget expenditures
    totaled 170.1bn AMD (90.5%). As a result the budget deficit proved
    to be less than the budgeted deficit.

    The on-budget expenditures showed an increase of 10.9% (16.7bn AMD) as
    compared with the corresponding period last year. The ministry accounts
    for the increase by an increase in expenses due to non-financial
    assets ands grants, as well as on the service of foreign debt and
    social benefits.

    Government-financed employees were unlucky. In the 1st quarter 2010,
    salaries, though raised by 6.6%, proved to be 10.7% lower than the
    budgeted level. So the relevant expenses totaled 14.8bn AMD (8.7%
    of the on-budget expenditures).

    The government-financed employees can, however, be grouped as follows:
    the fist group has to live on "crumbs from the table," whereas the
    second, sitting round the table, enjoy themselves with dainties.

    High-ranking and other officials at "elite" government agencies make
    full use of the opportunities afforded by the state budget.

    Specifically, a total of 1.5bn AMD (almost U.S. $4m) has been budgeted
    for the salaries to "people's deputies" and the RA Parliament staff
    this year. The expenses on the Central Bank of Armenia (CBA) (staff,
    cars, business tips, etc..) will total 4.7bn AMD (U.S. $12.2m).

    Although the number of ministries is not so high as compared with
    the Soviet period, numerous new government agencies have been formed
    only to prove a heavy burden on the shoestring state budget. The
    past decade has seen the formation of numerous institutes for public
    administration and economic management.

    Among them is the RA Public Services Regulatory Commission, which
    recently gained notoriety for approving the ArmRusgasprom Company's
    application for a new natural gas price. Taxpayers, with most of
    them being the monopolist's clients, are actually "sponsoring" the
    company and its highly paid staff, while the company's decisions
    run counter to taxpayers' interests. Moe examples might as well be
    cited. Of importance is, however, the following conclusion: despite
    their numerous reports, the sinecure organizations are hardly of
    benefit to the Armenian economy.

    On top of all this, officials promote their well-being by participating
    in numerous projects sponsored by international financial agencies
    and donor organizations. This is actually the reason for various
    strategic programs, like the Poverty Reduction Program.
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