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.