PROGRAM OF NEW GOVERNMENT WILL NOT HAVE DESCRIPTION OF
21st CENTURY'S ECONOMY, ECONOMIST EDWARD AGHAJANOV SAYS
01-05-2008 23:00:00 | Armenia | Economy
YEREVAN, MAY 1, NOYAN TAPAN. The program of the new
Armenian government will not have a description of 21st
century's economy, as this program gives priority to mining
industry and metallurgy, economist Edward Aghajanov said at the
May 1 press conference. By observations of international
experts, Armenia will become either marginal or competitive
country. In order to achieve the latter, according to E.
Aghajanov, a shift should be made from the traditional mode of
economy to an innovation economic mode.
He said that the president and prime minister of Armenia
have no idea about the real state of the country, while in this
case it is no use speaking about the country's development and
creating a financial, educational, health center in the region.
"Our authorities are fond of fairy tales. They are not aware
that billions rather than millions must be spent to achieve it,"
the economist said. In his words, it is unrealistic to speak
about such things when there is no stock exchange and banking
system in the country.
"When will our authorities become sober and take a serious
approach to this terrible situation: the competitiveness of the
country has fallen, the share of exports in GDP has declined to
a terribly low level - 12.5%, which has never happened in
Armenia before," he said.
He pointed out that VAT makes up 51.2% of tax revenues of
the Armenian state budget. Whereas, 11 years ago VAT made up
only 30% of tax revenues. Besides, the share of income and
profit taxes in the total amount of tax revenues has declined as
compared with 1996. "There is no such thing in any country. The
opposite has to happen. It means that in 1996, the tax burden
was mainly on business, whereas now it lies on people as it is
the consumer who pays VAT," E. Aghajanov said. According to him,
when buying bread, the Armenian population in fact pays more
money as VAT to the state than all the businessmen taken
together pay profit taxes.