ARF Know-how: less revenue spells less expenditure

PanARMENIAN.Net - "Tax reduction for economical entities will help increase state budget expenditure," ARF -Dashnaktsutyun representative, the MP Ara Nranyan told a press conference today.

"The party submitted budget revision propositions to Armenian government. We don't have to reduce the expenditure, but rather, lower revenues by reducing tax rates for economical entities."



According to him, the low deficit rate in Armenian budget, and the financial assistance Armenia will receive from its partners to overcome the financial crisis could be conductive to expenditure reduction. "If we renounce the expenditures, the financial crisis will have a most negative impact on Armenia. This is accounted for by Armenian government investing in capital construction and social program financing."



Yet, the researches of the Chamber of Control of Armenia on effectiveness of budget expenditure program implementation has serious flaws.



The Chamber of Control accession found a response in the Armenian Government. Specifically, the prime Minister Tigran Sargsyan did not preclude the possibility of expenditure reduction where it was implemented ineffectively.