YEREVAN, NOVEMBER 22, NOYAN TAPAN. The Armenian government is going to start the second stage of economic reforms, which is reflected in the 2008 draft state budget, Gagik Minasian, the head of the RA National Assembly standing committee on financial, credit, budgetary and economic issues, member of the Republican Party of Armenia (RPA) board, stated at the November 22 press conference. In his words, the quantitative growth registered in the country's economy before 2007 should result in qualitative changes. In particular, it is planned to increase the ratio of taxes to GDP (so far it has been below 15%) to 16.9% in 2008. G. Minasian said that with the aim of assisting the exporters, on whom the appreciation of the Armenian dram agaisnt the dollar has a negative impact, the 2008 budget envisages a reserve of 22 billion drams which will be allocated for the refund of excess VAT payments. According to him, the main peculiarity of reforms at this stage will be intensification of the fight against the shadow sector and the expansion of economic competition. If GDP growth is envisaged to make 10%, while growth of tax revenues - 27.7%, then, in his words, it is possible to achieve these indices only by means of consistent fight against the shadow sector. G. Minasian announced that it is envisaged receiving budgetary revenues of 25 billion drams through improvement of administration. The standing committee head said that it is impossible to ensure tax revenues of the indicated amount only by conducting checkings at enterprises of particular businessmen. He assured reporters that such checkings are now being done at a number of big enterprises, and this process will continue in future. In response to reporters' questions, A. Minasian replied that the upcoming presidential elections will not affect negatively the development of the economy. He expressed confidence that there will be no change in the political course and the prime minister Serge Sargsian will win during the first stage. At the same time, he stated that the budget is based on econimic realities and "any politician can change very little".

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