ArmInfo. Armenia is ready to switch to a program-targeted construction of the republic's budget from 2019. "Today there are no obstacles that could hamper the planned process," Gagik Minasyan, chairman of the NA Standing Committee on Financial-Credit and Budgetary Affairs, told a news conference on November 20, answering the question of ArmInfo.
Meanwhile, according to the previously approved program of actions, the transition to the program budgeting system was planned from 2018 onwards.
According to the head of the RA Standing Committee, program budgeting will solve two major tasks. First of all, when planning the budget, this gives a clear understanding of the expected result, on the basis of which a decision is made to send funds to one or another sphere. In addition, it provides quite a wide range of possibilities for monitoring compliance. Thus, as explained by the expert, already within a year it is possible to understand how much quantitative, qualitative and time result received meets expectations and, if necessary, make adjustments. "In general, program budgeting is the most effective method of improving the efficiency of public finance management and, after moving to this system, budget expenditures, including borrowed funds, will be spent more productively," he said.
Nevertheless, Armenia has already delayed the implementation of this principle of budget spending for a year, since, as Minasyan pointed out, the transition to software budgeting is a rather complex task and requires considerable time and resources. According to him, in this case Armenia is a pioneer among the CIS countries. Even many countries of Europe did not go to the system. "In comparison with a number of countries that have such practices, the indicators of Armenia are quite promising," the expert said, pointing out that the budget hearings in the Armenian parliament are qualitatively different from those of last year, where, in addition to financial indicators, there were also other non-financial indicators.