Price Rise Armenian Government’s Focus
12.06.2008,
18:41
Armenia’s Government focuses on the price rise issue, according to RA Prime Minister Tigran Sargsyan.
YEREVAN, June 12. /ARKA/. Armenia’s Government focuses on the price rise issue, according to RA Prime Minister Tigran Sargsyan.
“Nowadays it is a major concern of our community,” the Premier said yesterday at a parliament meeting. “If we want to reduce poverty in Armenia, we should realize that consumer price rise is a grave threat for the government program.”
Sargsyan has charged ministers to put forth proposals to curb price rise. Price fluctuations in global market show that the world has not fully overcome inflationary pressure, according to the Prime Minister.
He pointed out the four-fold rise in fuel prices for the past four years. Sargsyan believes abrupt fluctuations may cause sharp fall in prices.
According to the Prime Minister, wheat and rice prices fell sharply last month. An integrated approach to price fluctuations is necessary, Sargsyan said.
The Government undertakes measures to solve the problem. The only way to curb inflation is to improve the tax and budgetary policy by collected more taxes and reducing expenditures, so that the budget could not have an extensive influence on prices, according to the Premier.
Another important step is to make the Central Bank raise interest rates to curb inflation in Armenia. The Prime Minister called on the government to promote free competition. “The State Commission for the Protection of Economic Competition can assist us by studying the markets that lack price flexibility,” Sargsyan said.
The commission is to inform the Tax Service market study results to help it reveal attempts to make excess profits, according to the Premier.
He said the Government plans to implement an agricultural program the purpose of which is to protect farm workers from sub-purchasers.
“If we want to improve tax and customs administrations, we should refrain from subjective comments and try to be objective while implementing mechanisms,” Sargsyan said.
He expected to receive support from MPs in achieving this goal. Sargsyan believes current tax reforms will improve the situation and build up public confidence in government programs. –0--
“Nowadays it is a major concern of our community,” the Premier said yesterday at a parliament meeting. “If we want to reduce poverty in Armenia, we should realize that consumer price rise is a grave threat for the government program.”
Sargsyan has charged ministers to put forth proposals to curb price rise. Price fluctuations in global market show that the world has not fully overcome inflationary pressure, according to the Prime Minister.
He pointed out the four-fold rise in fuel prices for the past four years. Sargsyan believes abrupt fluctuations may cause sharp fall in prices.
According to the Prime Minister, wheat and rice prices fell sharply last month. An integrated approach to price fluctuations is necessary, Sargsyan said.
The Government undertakes measures to solve the problem. The only way to curb inflation is to improve the tax and budgetary policy by collected more taxes and reducing expenditures, so that the budget could not have an extensive influence on prices, according to the Premier.
Another important step is to make the Central Bank raise interest rates to curb inflation in Armenia. The Prime Minister called on the government to promote free competition. “The State Commission for the Protection of Economic Competition can assist us by studying the markets that lack price flexibility,” Sargsyan said.
The commission is to inform the Tax Service market study results to help it reveal attempts to make excess profits, according to the Premier.
He said the Government plans to implement an agricultural program the purpose of which is to protect farm workers from sub-purchasers.
“If we want to improve tax and customs administrations, we should refrain from subjective comments and try to be objective while implementing mechanisms,” Sargsyan said.
He expected to receive support from MPs in achieving this goal. Sargsyan believes current tax reforms will improve the situation and build up public confidence in government programs. –0--
