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The minister of finance of the Republic of Artsakh Artur Harutyunyan held a press-conference.

On January 25, the minister of finance Artur Harutyunyan held a press conference where he summarized the results the economic developments and fiscal policy of previous year and presented the planned activities.
In particular, referring to the macroeconomic indicators of 2018, the minister noted that the forecasted growth of GDP of 2018 will make 11%.
"Growth of value added in the mining industry and energy sector has been the basis for forecasting such growth rates, which, according to expectations, will provide 4.4 and 1.4 % of economic growth, and 5.2 % of economic growth will be ensured at the expense of other branches of material production.”- the minister emphasized in his speech.
Then the minister touched upon own revenues of the state budget. It made 54 bln 292 mln drams, providing 100.9% of the program index or by 479 mln AMD more than the planned index. In the structure of own revenues the major part is tax revenues and state duties. In 2018 53 billion 532 million drams have been transferred to the budget for tax revenues and state duties, which exceeds the planned 53 billion 172 million drams by 0.7% or 360 million drams.
"Tax revenues and state duties increased by 34.6% or 13 bln 743 mln drams, 10 bln 62 mln drams of which were due to the increase of tax revenues paid by Base Metals, and 3 bln 681 million drams was ensured as a result of economic growth and consistent administration implemented in the Republic of Artsakh."
Touching upon the 2018 budget expenditures, Artur Harutyunyan noted that the expences made 104 billion 296.6 million drams, ensuring 97.1% of the planned program, that is the year was summed up without accumulation of obligations. "During the execution of the state budget, we managed to fund all the wages, pensions, allowances and other social expenditures, as well as all the programs of education, culture, health and economy," the minister emphasized.
Then the minister presented the draft law on the structure and novelties of the state budget. The budget revenues have been projected at 54.7 billion drams, that is the growth expected by 2018 will be 3.2 percent. Tax revenues and state duties were envisaged by the state budget at the amount of 54.2 billion drams or more by 1.5 billion drams from the planned revenues for 2018. The ratio of "taxes / GDP" will make about 16.5%. Overall, over 75% of tax revenues are forecasted at the expense of large taxpayers.
Regarding the current state programs, the minister noted that in 2019 all social obligations that the state undertakes will be maintained.
Apart from the existing programs, a number of new programs have been envisaged by the 2019 State Budget. In particular, the minimum pensions will be set at 25500 drams, for which 251.1 million drams will be allocated from the state budget for 2019, more than 3300 beneficiaries will benefit from the July 1, 2019 state-sponsored cumulative pension scheme to allocate 1.8 billion drams, 500 million drams will be allocated from the state budget for raising the salaries of healthcare workers by 15 %. Then the minister touched upon the tax policy and tax administration. In this regard, the minister has highlighted a number of important areas for which the development of the ministry will be the ultimate goal.
 Among the implemented works in 2018, Artur Harutyunyan attached importance to the introduction of the concept of "Tax System Reforms", which would enable to implement systematic and realistic reforms in the sphere. "The concept is a key focus in forming a favorable legislative framework for businessmen, which is one of the most important incentives for investment. In line with this, a number of legislative changes that regulate the tax sphere have come into force on January 1, which are aimed at forming more favorable conditions for business environment, especially for small and medium-sized businesses, as well as defining the most optimal rates in some areas and effective taxation as a result of which more than 2200 small and medium-sized taxpayers, which constitute around 37% of taxpayers operating in the republic, will have enough tax a privileged field, "stressed the minister.
The minister also touched upon the steps taken to improve the relationship between the taxpayer-tax authority, as well as the modernization of the system and the work done in the field of information technologies and the upcoming innovations in the system of electronic governance.
Regarding the work on shadow turnover, the minister noted that in the reporting year the number of non-hired employees was recorded, the violation of monetary calculation rules by cash registers, the lack of initial data and corrective factors, the discovery of the deficit, the non-registration of businesses and the illegal entrepreneurial activity an offense case.
Within the framework of return of income tax paid by hired employees, the amount of interest payments for mortgage loan service was repaid in the amount of 145 million drams to 285 hired employees. Overall, since April 1, 2015, 352 borrowers have benefited from this program, having received 432 million drams return on income tax.
During the meeting, the minister also presented the results of inspections carried out by the state bodies, the work on transition to the new system of accounting with public sector organizations, reforms in the treasury system to increase the effectiveness and transparency of the state budget expenditures. In raising the effectiveness of the work, the minister attached special importance to closer cooperation with the Central Bank of Armenia, the ministry of finance, the State Revenue Committee and a number of other structures.
At the end Arthur Harutyunyan answered the journalists' questions.
  
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