During the NA sitting of June 14 the deputies ratified by voting the “Agreement on 4159AM Development Credit between RA and International Development Partnership (Restoring Energy Program).” Then the debate of the draft laws “On making Amendments to the Law on the Estate of Physical Entities and Declaration of Revenues” and “On making Amendments to the Law on Income Tax” that had been interrupted during the previous sitting continued.

Deputies of Country of Law Vram Gyulzadyan, Heghineh Bisharyan and Mher Shahgeldyan observed that the draft law is not at all against corruption and bribery. Heghineh Bisharyan noted that the party Country of Law is against draft laws that contradict the interests of people. Vram Gyulzadyan was interested what conditioned the urgency of the adoption of the law if the latter was going to act starting from 2008. And NA deputy Mher Shahgeldyan wanted to know what are going to be the criteria for the inspection of physical entities’ revenues. In answer to these questions, co-reporter Gagik Melikyan said that the adoption of the law is even late. About the application of the criteria, Gagik Melikyan informed that after the adoption of the law there will be relevant resolutions of the government and legislative initiatives.

MP Arshak Sadoyan considers unacceptable to present a draft law that has been rejected during a plenary sitting of the Parliament with the same form. MP Hovhannes Margaryan finds parliamentary hearings should be organized with the participation of mass media and NGOs in order to consider the public opinion. MP Tatul Manaseryan, greeting the adoption of the law noticed that it has considered the international experience.

Gurgen Arsenyan, Head of ULP faction opined about the draft conclusion informing that the ULP will vote for the legislative initiative.

NA Speaker Tigran Torosyan touching upon the debated law in his extraordinary speech noted that the RPA and him are for the adoption of the law as an important measure in the fight against corruption. Mr. Torosyan shared the concern of Country of Law deputies that the society has to be informed of the parliamentary events and reminded that among the members of Country of Law only Gagik Avetyan did not vote for the adoption of the law in the first reading.Assuring that the deputy has the right to vote according to his convictions and that no one may use moral pressure, the Speaker emphasized that a change of position of 180 degree is evident. Tigran Torosyan argued one more time that the law will apply to people whose monthly revenue in drams is equivalent to 1200 dollars, so after the adoption of the law the majority of people will not declare their revenues. The NA Speaker did not deny that there are physical entities that hide their revenues form the declarations and who register their revenues with the name of other people and called for disclosing the people that avoid from the process of declaration. “There is the following: do we have do expand the list of people who present declarations? Is it necessary for the people whose monthly revenue exceeds the equivalent of 1200 dollars to present declarations? If someone is against this, let him say I am against the idea of rich people presenting declarations, because in Armenia only reach people can have revenue equivalent to 1200 dollars. Let them say we are against the disclosing of the people who hide their revenues under the names of relatives,” stated Mr. Torosyan. He reminded the deputies of their responsibility concerning the adoption of laws arguing that it is not right to put the responsibility of the adoption of laws on our citizens. “Let’s work, meet our obligations. If we adopt a good law, people’s life will improve, if we adopt a bad law, people’s life will get worse. That is what people expect from us. Let us work together and define mechanisms of control, let us not allow our citizens feel pressed and the unfair officials, that will try to speculate the application of the law will be punished.” The NA Speaker urged the deputies to present suggestions to the government, which is willing forjoint work. Tigran Torosyan considers it fair that people who have a revenue equivalent to 1200 dollars pay taxes, so that the bad living category receives the due amounts from the budget for solving social problems.

“I am sure that the people who are going to be against this draft without arguments, they are going to be against the corruption fight and the well being of poor people,” concluded the NA Speaker.

Atom Janjughazyan, Deputy Minister of Finance and Economy, Chief Treasurer submitted to the MPs the state of execution of the current year’s budget. He informed that as in the preceding three years, in the year of 2005 a two digit index of economic growth has been recorded, which is 14 percent and that in the previous year we have succeeded for the first time to exceed the gross national product of 1989 by 14.1 percent. In comparison with the year of 2004 the ratio of tax incomes and gross national product has improved by 0.3 percent. The Chief Treasurer informed that the policies carried out in the economic and tax budget spheres have positively influenced on the increase of the people’s revenues. In comparison with 2004 the average salary has increased by 17.3 percent and in the budget system there has been an increase of salary by 23.6%. According to the report submitted by the Government, during the previous year the state investments of 38.4bn drams have been directed to the development of transport infrastructures, irrigation systems and to the repair of schools. The general annual investments have augmented by 31 percent. The main financial document of the year planned 375bn drams of revenue and grant. In reality 374bn drams have entered the budget. The tax revenues of the current year have augmented by 24%. During this period the State has returned 16.2bn drams, which is twice more than that of the previous year. Atom Janjughazyan noted that the expenditure part of the budget has been executed by 97.1%. During the previous year the expenditures financed by the budget have been 417.5bn drams. Atom Janjughazyan explained the variance of 12bn drams by the under execution of external sources, that is programs financed by credits and grants. Particularly, the second portion (10bn drams) of the World Bank’s credit for the reduction of poverty has not been received. In certain cases there have been economies. In comparison with 2004 the expenses have augmented by 25%. Again because of the under execution of external means the budget of 2005 has been executed with a deficit of 42.8bn drams instead of 54.6 that was planned. In comparison with 2004 the amount of the deficit has augmented by 34.8 percent. The Chief Treasurer assures that there is some change in the structure of the deficit: the volume of financing from the internal sources has augmented. At the end of the previous year the external state debt has been 1bn 99 million dollars. In the same period of 2004 this index has been 1bn 182 million dollars. According to the report of the Government, the external circulation of goods has been 2bn 718 million drams. Touching upon the fluctuations of the dram-US dollar exchange rate the Chief Treasurer informed that according to the law on the budget of 2006 the exchange rate for one dollar is fixed at 420 drams. If necessary, the changes will be discussed and submitted to the deputies.

The laws On Copyright and Related Rights, On Making Amendments and Addendum to the Civil Code of RA, On Making Amendment to the RA Criminal Code have been debated in the third reading, the bill On Making Amendments and Addenda to the Code of Administrative Offences of RA has been debated in the second reading.

According to the NA Rules of Procedure, the last sitting was dedicated to the question and answer of the deputies and the Government. The NA three-day sittings finished its work.