ArmInfo. The Armenian government continues to make efforts to introduce program budgeting in the country. This was stated in the Armenian parliament on June 26 by Prime Minister Karen Karapetyan, speaking at the discussion of the report on the implementation of the state budget for 2016 in the permanent commissions of the National Assembly.
According to him, work in the direction of program-targeted budget construction in Armenia is continuing. "This means that we will pay special attention not to the quantitative side of expenses, but to the qualitative one and to monitor the results to which the new costs led. It is this logic that should continue the discussions," the prime minister said.
Karen Karapetyan believes that the government's actions aimed at developing the Armenian economy have already started and will be consistently continued, which was reflected in the new - approved government program for 2017-2022. Earlier, in an exclusive interview with ArmInfo, the Minister of Finance of Armenia Vardan Aramyan informed that the terms of transition to the system of program budgeting in the republic from 2018 will be preserved. According to the minister, effective use of budgetary funds is an important problem, especially in the context of limited budget resources. Program budgeting, he said, if properly implemented and applied, can be the convenient tool that will allow under these conditions to determine priorities in the allocation of budgetary resources and to maximize the effectiveness of planned costs. The emphasis, he believes, should be shifted from the need for the funds necessary for the state to perform its functions, on what results the state will receive from using the budget, that is, ultimately, to understand what exactly managers are requesting financing and as a result, the society will receive this money.
As it was informed earlier, starting from 2018 Armenia will completely switch over to the system of program budgeting. August 13, 2015, the Armenian government approved the strategy for the transition to program budgeting. Assistance in developing the document was provided by the German Society for International Cooperation (GIZ) and the United States Agency for International Cooperation (USAID). The new system will be managed on the same principles as for the development of medium-term expenditure programs. The new model for the formation of the state budget provides that the budget should be compiled on the basis of not only quantitative but also qualitative cost estimates. Accordingly, branch ministries will be able to adjust their future budget programs taking into account previously achieved results. The logic of budgeting will also change. State bodies will be responsible for the compilation and results of their programs. Moreover, ministries' apparatuses will have to acquire financial knowledge to evaluate the effectiveness of their programs and evaluate the proposed new ones.