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Debates of the Draft State Budget Have Started at the Plenary Session of the Parliament
14 December 2017

December 14, National Assembly convened regular plenary sitting of the sixth session.

Opening the sitting, President of the Parliament Ashot Ghoulyan touched upon the discussions of the draft budget which started about a month ago in the parliament and noted that the budget that the budget had been debated for the first time after the adoption of the New Constitution, which was expressed through the timeframes for submission of state budget draft and other regulatory norms.

Before proceeding to the session, the Ashot Ghoulyan congratulated Mr. Araik Harutunyan on the occasion of his birthday and wished him strong health, success in all initiatives and patient and energetic work.

Then Armen Ohanyan, the newly elected parliamentarian by majoritarian system from the precinct N 6 of Hadrout region, was invited to take the oath of the parliamentary mandate.

After approving the agenda of the sitting, the parliamentarians passed to the legislation. Presenting the draft law “On the 2018 State Budget of the Republic of Artsakh”, the Minister of Finance of the Republic of Artsakh Grigory Martirosyan noted that it was drawn up taking into account the objectives of the 2017-2020 Plan of the President. Plan to ensure sustainable economic growth, development of priority sectors of the economy and to create a favorable business environment.

Referring to the economic growth indicators of 2017, the Minister noted that the created economic environments as well as economic development trends allow us to expect higher rates of economic growth than planned by the 2018-2020 mid-term expenditure program. According to expectations, it will make about 15%, which will be the highest in the last 10 years. Growth is driven by the increased value added of the mining industry and other branches of material production.

The inflation rate is predicted to be within 4 percent. Own revenues of the state budget will make 44.600 million drams, which is 17.4% more than in 2017, tax revenues will amount to 43.600 million drams, which is 17.8% more than the indicator for the current year. The budget deficit will make 4, 299.2 drams, which is less by 1.395.3 drams than in the current year. The budget expenditures will amount to 100,293.1 million drams, providing growth of 6.2%.

This year, the social security sector has the largest share of the budget expenditure structure, accounting for 22.8% of total expenditure.

Summing up the budget presentation, the Minister of Finance noted that 69 issues were submitted to the Government by the NA factions and separate deputies.

"Regardless of various economic developments, during the state budget execution, the government will pursue a thorough study of the issues and provide solutions," Grigory Martirosyan underscored.

MPs Gagik Baghunts, Vahram Balayan and Vilen Safaryan made speeches during the exchange of opinions.

Then the Minister of Finance presented the package of draft laws of the Republic of Artsakh "On Making Amendments and Additions to the NKR Law" On the NKR Budgetary System "," On Making Amendments and Additions to the NKR Law "On Scientific and Technical Activity", included in the budget, "On Making Amendments to the NKR Law" On Medical Aid and Servicing the Population "," On Amending the NKR Law "On Physical Culture and Sport", "On Making Amendments to the NKR Law" On Social Protection of the Disabled People of NKR "," On Making Amendment to the NKR Law "On Employment", "On making amendments to the NKR law "On Narcotic Drugs and Psychotropic Substances", "On Making Amendments and Additions to the NKR Law "On Wildlife ".

First Deputy Minister of Finance Arthur Harutunyan presented a package of draft laws included in the state budget on Making Amendments and Addenda to the NKR Law On Taxes, On Making Addenda and Amendments to the Law of the Republic of Nagorno Karabakh on the Profits Tax, On Making Amendments and amendments to the NKR Law "On Income Tax", "On Making Addenda and Amendments to the NKR Law" On Excise Tax "," On Making Addenda and Amendments to the NKR Law "On Value Added Tax", "On Making Additions and Changes in the NKR law "On fixed payments", " On Making Amendments and Addenda to the NKR Law On Licensing Payments, On Making Amendments to the NKR Law on the Use of Cash Registers, On Making Amendments and Addenda to the NKR Law on the Organization and Conduct of Inspections in the NKR, , "On Making Amendments and Addenda to the NKR Law" On Trade and Services ", On Making Amendments to the NKR Law" On Appropriations (Charges) for the Construction, Repair and Maintenance of Highways "," On Amending the NKR Law " nature protection payments and payments for nature management " ," On Making Amendments to the NKR Law "On Mandatory Payments for the Regulation of Public Services", "On Amending the NKR Law" On State Duty "," On Amending the NKR Law "On Trade Tax", " On Making Amendments to the NKR Law "On Cash Operations", "On Amending the NKR Law" On Terminating the Activity of Applicants of Cash Registers "and" On Amending the NKR Law "On Tax Accounting of Organizations and Individuals".

Following the endorsement of the Standing Committee on Budget, Financial and Economic Management, the MPs raised questions on targeted and state budgetary programs.

According to the NA Rules of Procedure, at 12:30 the Head of the Parliament declared a break in the discussion of the draft budget. In accordance with the procedure established by of the National Assembly, the deputies will submit their proposals on the budget to the NA apparatus within 24 hours.

After the break, the legislators continued the discussion of other issues on the agenda. Justice Minister Ararat Danielyan presented to the parliament the draft laws "On Making Amendments and Addenda to the NKR Law on Constitutional Proceedings", "On Making Amendments to the Criminal Code of the Nagorno Karabakh Republic" and "On Amending the NKR Civil Code". According to the author, the first draft submitted was conformed to the Constitution, paying special attention to the peculiarities of the examination and resolution of cases in the Supreme Court, and in the second and third projects it is expected to reflect the separate legal regulations set out as a result of constitutional reforms.

The Justice Minister then presented legislative initiatives on state symbols. On Making Amendments and Addenda to the NKR Law on the Coat of Arms of the Nagorno Karabakh Republic, On Making Amendments to the NKR Law On the National Anthem of the Nagorno Karabakh Republic, On Adopting the Laws On Making Amendments to the NKR Law On the Nagorno Karabakh Republic Flag, According to the Minister of Justice, is conditioned by the conformity of the laws, the Constitution and the decrees of the President of the Republic of Artsakh.

The parliament has discussed and adopted all the above-mentioned laws.

Presenting the Law on Making Amendments to the NKR Law on State Service of Emergency Situations of the Nagorno Karabakh Republic, Minister of Justice Ararat Danielyan mentioned that it is proposed to make a change to Article 14, Part 2 of the Law, establishing that the highest rescue service and the ranks of the Colonel are awarded by the President of the Republic of Armenia. With the adoption of the project, it is also expected to improve the existing legislation and to harmonize separate provisions of the law with new legal regulations. Following the endorsement of the Standing Committee on Defense, Security and Law Enforcement, the deputies made recommendations. Parliamentarian Arsen Arstamyan suggested revising the order of appointment of the Service Director. At the suggestion of the author of the draft law, the discussion of the draft law was postponed for additional discussion at the leading committee.

Samvel Avanesyan, Minister of Labor, Social Affairs and Resettlement, presented the draft law "On Making Amendments and Addenda to the NKR Law on State Pensions" and on Amending the NKR Law on Social Guarantees of State Officials. The overpayment of the pensions discovered as a result of a combination of different data bases between 2016 and 2017, which is conditioned by the lack of knowledge of the pensioner, is offered to be forgiven by January 1, 2018.

The law package was discussed and adopted by the parliament.

The parliamentarians considered and in the first reading also adopted a package of laws of the Republic of Artsakh "On Compensation for Harm Caused to the Life or Health of Servicemen in the Defense of the Republic of Artsakh" and "On Making Addenda to the Laws of the Nagorno-Karabakh Republic" On Taxes", "On Making Amendments and Addenda to the Law of the Nagorno Karabakh Republic on Social Insurance of Servicemen and Their Family Members," “On Making Addenda to the Law of the Nagorno Karabakh Republic on the Budget System of the Nagorno-Karabakh Republic, "On Amendments and Additions to the Law the Nagorno-Karabakh Republic "On State Pensions" and "On Making Additions to the Law of the Nagorno-Karabakh Republic “On Income Tax."

“On Amendments and Amendments to the law of the Nagorno-Karabakh Republic "On Social Insurance of Servicemen and Their Family Members", "On Making Addendum to the Law of the Nagorno-Karabakh Republic" On the Budget System of the Nagorno-Karabakh Republic "" On Amendments and Additions to the law of the Nagorno Karabakh Republic "On State Pensions" "and" On Amending the Law of the Nagorno Karabakh Republic "On Income Tax. '"

Other legislative initiatives submitted by the Minister are: "On Compensation for Damage Caused to Life and Health of Military Servicemen during Defense of the Republic of Artsakh," "On Making Addenda to the NKR Law" On Taxes "and Addenda and Amendments to the NKR Law" On Social Security of Military Servicemen and Their Family Members " the NKR Law on the Budgetary System of the Nagorno Karabakh Republic The drafts on Making Addendum, "" Nagorno Karabakh Republic Law on State Pensions and amending and "Income Tax" Nagorno Karabakh Republic "package of draft laws on Making Addendum to the PC. By adopting the bills, a special disciplinary penalty will be imposed, which includes the revenues received through the management of each employee, civil servant, contractor and individual entrepreneurs (mandatory payment to each state), donations and grants, as well as other sums at the expense of taking part in combat operations or at the contact line with the combat duty or special payments for damages to military servicemen during the performance of their duties.

The MPs discussed and adopted the package in the first reading.

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