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It is proposed to establish provisions in the Law On the Budgetary System of the Republic of Armenia to ensure the materialization, assessment and management of special fiscal and budgetary risks, as well as the publicity of information on them. In particular, it is designed to establish in the law that contracts giving rise to contingent liabilities and amendments thereto are subject to preliminary assessment by the authorized body, as well as to clarify that contracts giving rise to contingent liabilities and amendments thereto are also subject to mandatory registration with the authorized state body. The RA Deputy Minister of Finance Avag Avanesyan said this at the regular sitting of the NA Standing Committee on Financial-Credit and Budgetary Affairs on October 13, presenting in the first reading the draft law on making amendments and addenda to the abovementioned law for debate.

It is envisaged to add information regarding the specific fiscal risks to the provisions of the medium-term expenditure programme setting out the fiscal policy and the budget message of the Government. It is also proposed to add a provision to the law defining the procedure for collecting information by the state bodies for assessing specific fiscal risks.

To include in the articles of the law defining the sources of the revenue of the state budget and community budgets compensations, penalties and fines and other payments paid by the private partner to the public partner within the framework of Public-Private Partnership contracts defined by the RA Law On Public-Private Partnership.

It is expected that, as a result of adopting the draft legal toolset on tax-budgetary special risks, legal demands and bases of introducing information on them will be created.

The draft was endorsed by the Committee.