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Armenian government proposes to completely abandon the concept of

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04.09.2019
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The Armenian government proposes to completely abandon the concept of  "extra-budgetary funds". This was announced on September 3 at a  meeting of the parliamentary committee on financial-credit and  budgetary issues by the Minister of Finance of the Republic of  Armenia Atom Janjughazyan, who introduced a package of amendments to  the Law "On Customs Service" and related legislative acts.

According to the minister, all extra-budgetary funds will be  allocated to the revenue side of the state budget. Thus, according to  the Minister, these funds will cease to be resources that are outside  the framework of the adopted budget, and will form part of it.

Atom Janjughazyan emphasized that the existence of off-budget  accounts led to harsh criticism, since they were in fact not  controlled by the parliament, but regulated by the government. In  fact, the minister continued, the new package provides for  restricting the ability of state and local authorities to have extra-  budgetary accounts. At the same time, it is stipulated that the funds  available and already collected on these accounts will be allocated  to the respective budgets, ensuring their further distribution in the  necessary areas and as necessary. In addition, as the head of the  Ministry of Finance noted, this will ensure the creation of a system  of distribution of public funds, which, on the one hand, will  guarantee the development of the economy, and on the other hand,  balanced provision of social protection and public needs of the  state.

To recall, on June 6, the RA government approved amendments to over  two dozen laws that regulate extra- budgetary funds of various state  structures. According to the amendments, the funds of extra-budgetary  funds of the Armenian departments will be limited. Then the Deputy  Minister of Finance of the Republic of Armenia Karen Brutyan noted  that the package stipulates that the funds of all extra-budgetary  funds be considered as revenues to the state budget revenues. The use  of extra-budgetary funds in the state budget will fall under the  expenditure side of the state budget. The measure proposed by the  Ministry of Finance, as emphasized by the deputy minister, is  provided for by the government's program. The package went through a  long and heated discussion. Nevertheless, as Karen Brutyan noted, it  is possible that before consideration of the bills in the National  Assembly of the Republic of Armenia, amendments will again be made to  it. 

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