CONCLUSION on the Republic of Armenia Government's report “On implementation of 2010 state budget of the Republic of Armenia” Study basis: Annual program of the RA Control Chamber for 2011, RA laws “On Control Chamber” and “On RA budget system”. Purpose of the study: Compliance of the RA Government’s report “On implementation of the RA 2010 state budget” (hereinafter report) with the RA legislation. Objects of the study: RA Ministry of Finance, Treasury system. Study period from 01.05.2011 to 20.05.2011 The study was conducted based on the following documents: RA Governmental report “On implementation of the RA 2010 state budget”; RA Governmental resolution # 1522-N “On measures ensuring the implementation of the RA 2010 state budget and on fulfillment of the redistribution in the RA 2010 state budget” dated 24 December, 2009; RA Governmental resolution # 48 “On approving the procedure for implementation of the Republic of Armenia state and municipal budgets” dated 18 June, 2002; RA governmental resolutions on budget implementation, as well as other legal acts. Summary indicators of the RA state budget for 2010 According to the RA Government’s report on Implementation of the RA 2010 state budget (hereinafter report), under the RA law “On 2010 RA state budget” (hereinafter Law) revenues of the RA state budget for 2010 were planned to be in the amount of 742,138,045,800 drams. During 2010 under the RA Governmental resolutions revenues of the state budget were increased by 30,823,549,700 drams, and consequently, adjusted plan for the 2010 RA state budget revenues amounted to 772,961,595,500 drams. According to the clause 11 of the article 9 of the Law, estimates and actual indicators of inflows and outflows to and from a number of accounts of the extra-budgetary funds were included in the report on implementation of the RA 2010 state budget and were reflected as the relevant inflows and outflows of the state budget. In the report, inflows to the accounts of extra-budgetary funds of the
16
Embed
CONCLUSION on the Republic of Armenia Government's reportarmsai.am/files/eng/conclusion2010.pdf · CONCLUSION on the Republic of Armenia Government's report “On implementation of
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
CONCLUSION
on the Republic of Armenia Government 's report “On implementation of 2010
state budget of the Republic of Armenia”
Study basis: Annual program of the RA Control Chamber for 2011, RA laws “On Control Chamber”
and “On RA budget system”.
Purpose of the study: Compliance of the RA Government’s report “On implementation of the RA
2010 state budget” (hereinafter report) with the RA legislation.
Objects of the study: RA Ministry of Finance, Treasury system.
Study period from 01.05.2011 to 20.05.2011
The study was conducted based on the following documents: RA Governmental report “On
implementation of the RA 2010 state budget”; RA Governmental resolution # 1522-N “On measures
ensuring the implementation of the RA 2010 state budget and on fulfillment of the redistribution in
the RA 2010 state budget” dated 24 December, 2009; RA Governmental resolution # 48 “On
approving the procedure for implementation of the Republic of Armenia state and municipal
budgets” dated 18 June, 2002; RA governmental resolutions on budget implementation, as well as
other legal acts.
Summary indicators of the RA state budget for 2010
According to the RA Government’s report on Implementation of the RA 2010 state budget
(hereinafter report), under the RA law “On 2010 RA state budget” (hereinafter Law) revenues of the
RA state budget for 2010 were planned to be in the amount of 742,138,045,800 drams. During 2010
under the RA Governmental resolutions revenues of the state budget were increased by
30,823,549,700 drams, and consequently, adjusted plan for the 2010 RA state budget revenues
amounted to 772,961,595,500 drams.
According to the clause 11 of the article 9 of the Law, estimates and actual indicators of inflows and
outflows to and from a number of accounts of the extra-budgetary funds were included in the report
on implementation of the RA 2010 state budget and were reflected as the relevant inflows and
outflows of the state budget. In the report, inflows to the accounts of extra-budgetary funds of the
2
RA 2010 state institutions under the adjusted plan amounted to 25,188,356,200 drams, out of which
in the observed period 19,943,141,200 drams were the received revenues, the amount of
5,257,227,300 drams was the free balance of the extra-budgetary funds at the beginning of the
observed period, 12,012,300 drams were the inflows coming from alienation of nonfinancial assets.
Actual inflows to the accounts of the extra-budgetary funds amounted to 24,600,449,500 drams, out
of which 19,288,854,100 drams were actually received revenues in the observed period, the amount
of 5,290,048,500 drams was the free balance of the extra-budgetary funds at the beginning of the
observed period, and 21,546,800 drams were the inflows coming from alienation of nonfinancial
assets.
Revenues of the RA 2010 state budget, without extra-budgetary funds, factually amounted to
761,150,572,900 drams or 101.1% of the adjusted plan (without extra-budgetary funds); and
revenues of the RA 2010 state budget including extra-budgetary funds factually amounted to
780,439,427,100 drams or 105.2% of the indicator foreseen by the Law and 101.0% of the adjusted
plan. Factual revenues of the 2010 state budget amounted to 22.5% of GDP (3,461,883,200,000
drams) against 22.2% of 2009.
Under the Law the total expenditures of the RA 2010 state budget were planned in the amount of
935,524,584,000 drams, during 2010 under the RA Governmental resolutions expenditures were
increased by 40,772,320,100 drams and consequently, adjusted plan for the expenditures (including
24,121,918,800 drams – expenditures made at the expense of the extra-budgetary funds) amounted
to 976,296,904,100 drams; and the adjusted plan of the expenditures, without the expenditures
made at the expense of the extra-budgetary funds, amounted to 952,174,985,400 drams. The total
factual expenditures (including 18,785,251,700 drams of the factual extra-budgetary expenditures)
amounted to 954,316,528,300 drams or 102.0% of the amount planned by the Law, and 97.8% of the
adjusted plan. Factual expenditures of the 2010 state budget amounted to 27.6% of the GDP (in 2009
– 29.9%).
By the Law the deficit of the RA 2010 state budget was approved in the amount of 193,386,538,200
drams. During the year the planned deficit of the RA 2010 state budget was increased by
9,948,770,400 drams, i.e. the adjusted plan amounted to 203,335,308,600 drams. In the course of
the RA 2010 state budget implementation a deficit of 173,877,101,300 drams was recorded, which is
89.9% of the amount planned by the Law, and by the annual adjusted plan 85.5% of the foreseen
amount. The deficit of 2010 amounts to 5.0% of the GDP (in 2009 – 7.7%).
3
Analysis of the RA laws on the RA state budgets for 2002-2010 shows expansion of authorities
assigned to the RA Government, by which in 2010 the RA Government was authorized to make
distribution of additional expenditures in case of availability of additional revenues and raised funds.
About revenues of the 2010 state budget
In 2010 the factual revenues of the state budget amounted to 780,439,427,100 drams (including
extra-budgetary funds); compared to 2009, factual revenues of the budget increased in 2010 by
90,444,325,600 drams or by 13.1%, and without extra-budgetary funds growth amounts to
87,947,545,600 drams or 13.1%. In 2010 the ratio of the factual revenues of the state budget to the
GDP, including extra-budgetary funds, amounted to 22.5%, against 22.2% of 2009, i.e. the previous
year’s rate was surpassed by 0.3 percentage points.
According to the report, in the structure of the factual revenues of the 2010 state budget tax
revenues amounted to 73.6%, without revenues of the extra-budgetary funds – 75.2%, state duties –
2.6% and 2.6%, respectively, compulsory social security payments – 13.5% and 13.8%, respectively,
official transfers – 3.9% and 3.7%, respectively, and other revenues – 6.5% and 4.6%, respectively.
Factual tax revenues of the RA 2010 state budget (including extra-budgetary revenues), compared to
the foreseen by the Law amount of 550,062,405,000 drams, were more by 24,002,028,400 drams or
by 4.4%, ensuring 102.5% performance of the adjusted annual plan. Factual tax revenues of the 2010
state budget amounted to 16.6% of the GDP, against 16.2% of the previous year.
In 2010 state duties of 20,034,563,200 drams were transferred to the state budget, which amounted
to 98.5% of the adjusted plan, and 100.5% of the amount approved by the Law. In 2010 state duties
amounted to 2.6% of the factual revenues.
In 2010 compulsory social security payments were foreseen by the Law in the amount of
105,234,500,000 drams, the factual indicator against adjusted plan was performed more by
101,419,300 drams and amounted to 105,335,919,300 drams, or was performed by 100.1%. In 2010
compulsory social security payments amounted to 13.5% of the factual revenues.
In 2010 official transfers to the state budget were foreseen by the Law in the amount of
42,503,285,800 drams, under adjusted plan the amount was 47,582,256,400 drams, the factual
indicator was performed by 30,588,819,500 drams, or 72.0% of the amount foreseen by the Law, and
64.3% of the adjusted plan. Without extra-budgetary revenues, the factual official transfers
amounted to 28,242,509,300 drams, compared to the amount approved by the Law the performance
4
rate of which amounted to 66.5%, and 63.6% of the adjusted plan (without extra-budgetary
revenues). In 2010 official transfers amounted to 3.9% of the factual revenues.
In 2010 “other revenues” of the state budget were foreseen by the Law in the amount of
24,400,260,000 drams, under adjusted plan the amount was 39,592,257,400 drams, the factual
indicator was performed by 50,415,691,700 drams, or 206.6% of the amount foreseen by the Law,
and 127.3% of the adjusted plan. Without extra-budgetary revenues, the factual “other revenues”
amounted to 35,047,548,600 drams, compared to the amount approved by the Law the performance
rate of which amounted to 143.6%, and 142.0% of the adjusted plan (without extra-budgetary
revenues). In 2010 “other revenues” amounted to 6.5% of the factual revenues.
The data on adjusted plan and performance rate by the types of the revenues are missing from the
report, which makes impossible to carry out a comprehensive analysis. In the opinion of the Control
Chamber, it is necessary to foresee the revenues by the revenue types, especially tax revenues by
revenue types in every year’s law “On the RA state budget”.
During 2010 companies with state-owned stake from the net profit of their financial activity paid
dividends of 658,717,200 drams, instead of planned 330,000,000 drams.
Analysis revealed that currently there are 772 companies with state-owned stake registered in the RA
state registry, out of which 715 companies are those with 50 and more percent of the state stake,
and 57 are with less than 50%. It should be noted that currently out of 772 companies only 387
companies are included in the field of control, out of which 382 companies are those with 50 and
more percent of the state-owned stake, and 5 companies are those with less than 50 percent of the
state-owned stake. It means that total number of 385 companies (52 companies are those with less
than 50 percent of the state-owned stake and 333 companies are with 50 and more percent) are left
out of the control field of the RA Ministry of Finance, which in case of having profit were supposed to
pay dividends from the net profit. It is suggested that measures should be developed to include those
385 companies in the process, which will give opportunity to enter additional revenues to the RA
state budget.
About expenditures of the 2010 state budget
According to the report, the total factual expenditures (including 18,785,251,700 drams of the factual
extra-budgetary expenditures) amounted to 954,316,528,300 drams, which amounts to 97.8% of the
adjusted plan.
5
Study on the performance of the RA 2010 state budget programs (by the functional classification)
revealed that:
1. in total 8 programs, the amount of which under adjusted plans was foreseen to be
7,522,191,700 drams, were not performed, i.e. payments were not made;
2. under 30 expenditure programs factual expenditures amounted to 59,985,426,000 drams, the
expenditures exceeded the amount of the adjusted plan by 15,332,146,600 drams;
3. Under 23 expenditure programs (including 17 external credit and grant programs) the factual
performance rate was lower than 50% of the adjusted plan (unfulfilled programs are not
included). The adjusted target figure of those programs amounted to 15,980,158,000 drams
or 27.1% of the adjusted plan. It should be noted that in those programs the biggest negative
deviation of the factual indicator against adjusted plan in monetary terms was recorded in the
credit programs “North-South transport corridor development project implemented with the
support of the Asian Development Bank ” and “Gyumri-2” substation reconstruction project
implemented with the support of the German Development Bank” with the total value of
-5,001,669,300 drams (under 04050110 program -3,524,933,500 drams and under 04030504
program -1,476,735,800 drams);
4. During 2010 seven expenditure programs amounting to the planned 635,406,000 drams have
been zeroized as a result of the adjustment in the annual program;
5. 22 expenditure programs were not foreseen by the Law, however under adjusted plan were
foreseen in the amount of 9,239,414,100 drams (without extra-budgetary funds), and were
factually performed in the amount of 10,585,317,500 drams, or 114.6% of the adjusted plan.
8 programs of those 22 are grant programs, the factual expenditure of which amounted to
1,926,634,000 drams, and 10 credit programs with the factual expenditure of 7,250,515,100
drams;
6. During 2010 the structure of the made expenditures was the following: social protection –
25.6%, defense – 15.5%, general public services – 15.0%, economic relations – 11.8%,
education – 10.3%, public order, security and judicial activity – 7.1%, healthcare – 5.9%,
housing construction and communal services – 4.5%, reserve funds not included in the main