Budgetary planning remains formal ‘despite tremendous amounts spent’ – Transparency International  

15:27 • 31.07.19
Economy

An analysis of the Justice Ministry’s budgetary indicators covering the first quarter of 2019, as well as 2020 has revealed a wrong planning in the sector, the executive director of Transparency International Armenia said today, citing their earlier forecasts.

Speaking at a news conference, Varuzhan Hoktanyan outlined the main problems observed in the program-based budgeting, noting that the government agencies adopted the model only in 2019.

“Being program-based in form, it isn’t absolutely so when it comes to the content,” he said, adding that the differences observed are said to demonstrate also the formal nature of the indicator planning. 

“The third problem in the 2020 draft [budget] deals with the lack of justification, i.e. – the [estimated] benefits to the society and the additional values linked to the said services,” he said.

Hoktanyan agreed that the countries which have only recently made the transition to the system (i.e. the neighboring Georgia) had difficulty in introducing its ideology. He said that despite the international donors’ large-scale grants, the focus still remains largely on the formal aspect.

Admitting that their findings are not an official statistics in essence, Hoktanyan said they intend to submit the document to the National Assembly "to foster future debates".

According to Sargis Nasibyan, an expert in public finance also attending the news conference, quarterly spending was a failed attempt to fit into the established budgetary format.

“Certain indicators in the program measures reflect mainly qualitative data, which cannot provide a full description of the measure in question. The first quarterly report naturally reveals an essential deviation from those indicators, whereas their explanations highlight an impossibility to predict the applicants’ number,” he said, citing the earlier precedent of the Individual Data Protection Program (which had seven applicants instead of the estimated 30).

 

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