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