Armenian Parliament holds discussions of Government new program for 2017-22

ArmInfo. New Government program is  able to change the quality of life and improve well being in Armenia,  Prime Minister Karen Karapetyan stated at an extraordinary session of  the Parliament on June 21, presenting the main provisions of the  Government's activity program for 2017- 2022

According to Prime Minister, executive power of the republic,  Armenian government is well aware of the expectations of the society,  and in its actions takes into account these expectations. "Based on  the work carried out in the recent nine months, we clearly represent  our present, we know what problems we have and opportunities." We  also have a clear vision of the future, we know what and how to  change, and began to implement it. Problems existing in each sphere,  clearly outlining our decisions and presenting a program of  substantive reforms, "the head of the Government said. According to  him, the vision of the Government's program is based on the principle  of safe, fair, free and intelligent Armenia.

The program of the Government for the next five-year period,  Karapetyan said, consists of four main sections: the system of public  administration and the legal system, Foreign policy and defense,  Economic progress, social sphere. Each section also reflects the  lists of reforms submitted by agencies with specific time frames,  which in the long term will ensure the development of the whole  country.

Speaking about the main targets for economic growth for the next 5  years, Prime Minister said that the Armenian Government claims to  reach outperforming in comparison with many developed countries of  the world economic growth by providing an annual GDP growth of 5% on  average. Armenia is instructed to be guided by the economic model  based on demand, in which the growth of exports can be the locomotive  of growth up to 40-45% in the country's GDP. To implement the planned  programs, it is proposed to diversify the real sector of the economy  and markets. The Government's consistent steps to improve the  business environment, as noted, should lead to a simplification of  administration and transparency of services provided by the state.

Within the framework of the measures, Government of Armenia, during  next 5 years, claims to be in the top 20 out of 190 countries of the  world in the rating of World Bank Doing Business. When implementing  complex measures to improve the business environment of Armenia, it  is expected that, with all other equal conditions, through the  envisaged activities aimed at alleviating the administrative burden  for business, reducing corruption risks, increasing the transparency  of services provided to the private sector by moving them to the  online site and improvement of the legislative base, in the Doing  Business index the republic will rise from the 38th place and take  the position among the first 20 countries of the rating.

Consecutive steps are also planned to protect the interests of  investors, by improving the relevant legislative framework, as well  as initiating institutional reforms. According to the program,  investment programs aimed at inclusive growth and creation of new  jobs will be supported by the executive body.  It is also considered  a reduction in the unemployment rate by 12 percentage points, with a  parallel increase in employment and wages, with an increase in the  nominal minimum wage by 25%.

As a result of planned events for 2017-2022 aimed at developing  tourism in the country, the Armenian government also intends to  increase the number of tourists visiting the republic to 3 million a  year.

New program of Armenian Government for the next five years provides  for a consistent increase in the potential for economic growth and  ensuring macroeconomic stability. At that, the Government plans to  improve the management of public debt, ensuring its stability. In  particular, by the end of 2017, it is planned to introduce a system  for assessing the behavior of participants in the primary market of  Government bonds. From the beginning of 2018, it is planned to  introduce new fiscal rules that do not impede economic growth and, in  the long term, aimed at stabilizing the debt. Until the end of 2019,  the Government plans to introduce a new tool for assessing the  various effects of fiscal policy on the economy.  Until the end of  2022, it is planned to establish a budgetary framework that involves  a sequential increase in capital expenditures in the medium term,  with the observance, if possible, of moderate implementation of  current expenditures with ensuring their effectiveness. At the same  time, to facilitate interstate trade and cross-border operations, the  scope of a number of agreements that exclude double taxation will be  expanded. In particular, in 2019-2022 it is planned to sign   contracts with at least 5 countries.

In its new program, Armenian Government, together  with the Central  Bank, will take steps to increase the availability of financial  instruments and the formation of long-term pension savings, the  infusion of which into the real sector will stimulate economic  development and increase investment. In particular, the Government  provides for the end of 2018, together with the Central Bank, to  develop a capital market development program aimed at encouraging the  issuance of shares and bonds by local companies. Until the end of  2019, the Government envisages, together with the Central Bank,  through the necessary right regulation, to increase the availability  of financial services. Until the end of 2020, to expand the pension  savings system, the Government together with the Central Bank will  develop a medium-term program for the development of the insurance  market aimed at introducing new insurance instruments and launching  life insurance.  The share of taxes in GDP of Armenia in the next  five years is planned to increase by 2.5 percentage points.  This,  according to the program of the Armenian Government for 2017-2022,  the Government intends to achieve due to effective tax and customs  administration, which should lead to stable tax revenues.  The aim of   Armenian Government is to ensure an annual increase in gross output  in the agricultural sector by at least 5%.  The actions of Armenian  Government in the sphere of transport, communications and IT during  207-2022 will be aimed at ensuring the right of citizens to free  movement by creating a stable, affordable and competitive transport  network, street and road network that meets modern requirements for  safety and comfort. As a result of modernization of ICT and  communication infrastructure, it is expected to create new jobs and  even development of the country's communities, increase the  availability of universal postal services, provide financial control  over the area and modernize management mechanisms.

The policy of Armenian Government for 2017-2022 in the energy sector  will be aimed at increasing energy independence and security,  ensuring regional integration and sustainable development based on  further development of nuclear energy and the full use of energy  resources of the country, as well as the introduction of  energy-efficient modern technologies.