2021 September 30

Daily news wrap-up

Sep/30/2021: Government approves 2022 budget: science +83%, education +27%, infrastructure +32%, social +15%, army +11% __ Part of Zangezur copper plant will be "voluntarily nationalized" __ New diamond factory __ $100/mo for newborn __ Ex-MOD & arms supplier arrested __ Anti-corruption: judge, EU
by ar_david_hh

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Your 11-minute Thursday report in 2910 words.

executive branch approves the 2022 budget / science +83%, education +27%, infrastructure +32%, social +15%, military +11%

Premier Pashinyan: the action plan should lay the groundwork for the peaceful, sustainable and inclusive development of the country. Our goals, which are expressed in the 2022 budget, are ambitious and realistic. We realize that not only economic intervention by the government, but also social and cultural transformations are needed to bring them to life.

First of all, we are working to increase the efficiency of the public administration system, and to transform the work culture. The most important chain is the planning and implementation culture, a lack of which can lead to underperformance of capital expenditures.

Developing the private sector's capabilities is also important in this regard. We have taken action, and the efforts have begun to bear fruit. Some companies began investing to be competitive in the capital construction field, so they can complete the projects within schedule and with high quality.

The government intends to continue its investment promotion policy in this area with three main methods: *transparency in the public procurement system, increasing the volume of tender lots, legal reforms to simplify relations with reliable companies.*

The next important issue is the development of analytical skills, which will allow us to increase the effectiveness of investments and expenditures, and to make social programs more targeted. The citizens will be more confident that their taxes are spent more efficiently.

We must involve the general public in the various stages of budgeting and implementation. Steps have been taken in the past three years. We will continue to work on this.

The 2022 budget has three main priorities: *reforms in defense system, infrastructure development, education & science.*

It's important not only to modernize the army capabilities but to also secure a favorable external environment so Armenia and Artsakh can develop. We need to reopen and develop the regional communication routes. This can change the structure of the Armenian economy and become an impetus for the development of domestic infrastructure, ensuring long-term inclusive economic growth, and the flow of foreign investments.

Education will play a big role here, therefore access to education and inclusive development is our long-term priority. This is the only way our nation can be competitive in the modern world. We're implementing new funding formulas to develop science and tech.

Obviously, this one budget alone won't be enough to solve all the problems, but we must get out of the trap in which we aim to do everything but end up doing nothing. In the 2022 budget, we have sought to carefully balance the government's priorities while managing the fiscal risks. //

Finance Minister: the tax-to-GDP ratio will improve by 0.9% to 23.4%.

The deficit will be 3.2% of GDP, or ֏242B.

The debt-to-GDP ratio will be 60.2%.

The economic and social infrastructure expenditures will see an unprecedented rise and reach 4.4% of GDP.

Budget allocations for infrastructure and territorial developments will increase by 31.6% and reach ֏288.6B.

Social programs to increase by 15%, to ֏580B.

Education expenditures to increase by 27.4%, to ֏223.3B.

Science expenditures to increase by 83%, to ֏25.1B.

Military to increase by 11% to ֏345.4B.

Over ֏1B for military retraining; people will be sent abroad for education. //

Pashinyan: next year we plan unprecedented ֏350B capital investments, the largest in 3rd republic's history. Get working so we can have tender winners ASAP. An important part of this will be the North-South highway project, new reservoirs, and new schools/kindergartens. We set a very high bar. We need to work actively and effectively now. //

https://armenpress.am/arm/news/1064405.html https://armenpress.am/arm/news/1064442.html https://armenpress.am/arm/news/1064450.html https://youtu.be/nSFlLsyRMgQ https://youtu.be/S47xpGCaCJg https://www.panarmenian.net/arm/news/295820/

Tags: #Budget2022 #2022Budget

parents will receive $100/mo for every 3rd and subsequent child until they turn 6

As part of the ongoing efforts to boost demographics, today the government approved Pashinyan's election campaign promise to pay monthly ֏50k subsidies to families that have three or more children. Goes into effect on January 1. Needs Parliamentary approval first.

https://armenpress.am/arm/news/1064447.html https://youtu.be/JKDsYOGpHGU

Tags: #demographics

25% of Zangezur Copper plant will be "nationalized"

The plant is one of Armenia's largest taxpayers. It has been at the center of laundering and secret share ownership allegations after the 2018 revolution.

Pashinyan recently complained that its owners are taking an unfair profit after global copper prices skyrocketed. Subsequently, the government introduced a new mining tax, resulting in dozens of millions of dollars in new tax income.

A company that owns 60% of Zangezur shares has announced plans to donate 25% of shares to the government. It was discussed behind closed doors today. More details later.

https://factor.am/423411.html

Tags: #Zangezur

diamond processing plant will be built in Alaverdi (Lori)

After 2018, the government forced the Alaverdi copper plant to install pollution caps, citing high levels of dangerous sulfur dioxide pollutants, which had gotten worse since the 1990s when the plant switched from producing pure copper to copper alloy.

The factory could not afford the new caps. Combined with other existing financial debt, the plant was forced to shut down. After the closure, the workers kept receiving paychecks, presumably from the government, until an alternative solution could be found.

QP MP Mikrtchyan: Economy Minister Kerobyan and I visited the city 5 months ago. I informed him about the economic issues in the city after the copper plant's closure. After much effort by the Ministry, the "ADM Diamond" agreed to invest in a new factory with 150 jobs. Call exxxxxxxxx to apply. //

https://www.armtimes.com/hy/article/221961 https://www.azatutyun.am/a/29768130.html https://oc-media.org/armenia-s-copper-capital-no-longer-the-uncertain-future-of-alaverdi/

IRS is about to launch the "One Window" unified electronic system to cut waiting times and runaround

IRS reports: it's a staged rollout that begins tomorrow. 17 state agencies that provide various permit documents will gradually join until the end of this year.

One Window will meet the highest international standards. Customs services will become easier and faster. Almost all permits can be obtained there.

You can add information about the cargo that's being transported in and out, by filling out only one document. The system will then process the data and automatically send documents to multiple agencies.

You can make online payments and track the progress of your document processing. The system is implemented with the cooperation of the government and the EU. //

https://armenpress.am/arm/news/1064427.html

anti-corruption: all purchase/services contracts above ֏300,000 will be done electronically to combat the shadow economy

Central Bank president Martin: if the bill is approved, beginning January 1, the >$600 transactions will require electronic trace. The goal is to reduce cash circulation and combat the grey economy. There will be different conditions for provinces and Yerevan.

Next year, electronics will replace cash while paying salaries, pensions *(those disabled and over 70 can still opt for cash)*, medical services, education fees. Provinces will switch to electronics in 2023-2024.

Stores and other service providers will install devices for card payment. The law will prohibit overcharging customers if they pay electronically instead of cash.

The law will also help Armenia towards its strategic goal of becoming a tech-oriented country with tech-enabled payment methods (QR, etc.).

Pashinyan: the emphasis is on fighting corruption. Electronic transaction means it's traceable. It will make tax evasion difficult and provide additional revenues to the budget.

https://armenpress.am/arm/news/1064440.html https://www.panarmenian.net/arm/news/295817/

Council of Europe's report about Armenia's anti-corruption efforts

GRECO has a new report about Armenia. It had made 18 suggestions in 2016. It finds that the suggestions were partially implemented. 7 out of 18 points were satisfactory.

https://www.coe.int/en/web/greco/-/armenia- https://armenpress.am/arm/news/1064477.html

Council of Europe vowed to continue to help Armenia with justice reforms

A representative visited Armenia and met Justice Minister Andreasyan. They spoke about the judicial, penitentiary, police, etc.

https://armenpress.am/arm/news/1064482.html

Corruption Prevention Committee has asked the Supreme Court to punish Appeals Court judge

Judge Gagik Khandaryan is accused of conflict of interest by being a judge and simultaneously partially owning/running a company.

https://factor.am/423212.html https://factor.am/423245.html https://www.arlis.am/documentview.aspx?docid=119531

Armenia will send another ֏13.5B ($28M) aid to the Artsakh Republic

Minister: the ֏1.2B is for subsidizing residents' utility bills *(electricity, gas, comm.)* and the rest as a state loan to pay public salaries, pensions, healthcare, etc. The annual interest rate of the loan is 0,001%, with 2025 as the repayment date.

Pashinyan: This is the fourth such aid package in recent times, overall ֏100B ($206M). We will continue this process, while gradually shifting the aid towards long-term development projects.

Minister: another ֏1B for Syunik province to restore the vitality of communities and resolve existing problems.

https://armenpress.am/arm/news/1064404.html https://armenpress.am/arm/news/1064412.html https://youtu.be/ziHGjkfPlOI

thousands of citizens were given professional mental health services after the war

Emergency Minister Piloyan: a company won the tender to provide the services. They have consoled 1,075 people so far, with each receiving 4-5 sessions. The works will continue until December and will be extended if necessary. // *[various humanitarian orgs had also independently provided similar services.]*

https://armenpress.am/arm/news/1064452.html

border communities will continue to receive reimbursement for gas, water, electricity, and property tax

The government will present the bill to parliament for approval. 81 settlements and 23 communities will receive ֏1.155B in utility subsidies.

https://armenpress.am/arm/news/1064411.html

update: ex-MOD Davit Tonoyan and his associate Patron Davo, a weapon delivery middleman, will be jailed

Context in Wednesday post. Davit Tonoyan's apartment was raided by NSS as part of the ongoing investigations against ranking army officials relating corruption. It's about bad missiles that were purchased in 2011 and later resold to the army instead of being sent back, and similar alleged crimes. Patron Davo, the weapon delivery middleman, was charged with another crime earlier this year.

Latest report from NSS: the investigation continues over abuse of power and forgery during the weapons purchases process. The 2018-2020 Defense Minister Davit Tonoyan and a delivery company director Davit Galstyan (Patron Davo) have been arrested.

They are both charged with embezzlement of ֏2.277B and committing dangerous acts. Additionally, other former and current army officials are charged with similar crimes.

We will provide regular updates on this case since there is a public interest, but we cannot reveal every detail from the preliminary investigation. //

Patron Davo is facing new charges unrelated to his aforementioned early-2020 felony, said his lawyer. He has been arrested. He denies wrongdoing. Former MOD Seyran Ohanyan was questioned as a witness during the investigation. Ohanyan said he isn't concerned about himself being raided.

Seyran Ohanyan about suspect Davo's deliveries during his tenure: Patron Davo was not the only weapons supplier, but a significant share came from him. There weren't many options. Obtaining permits and delivering weapons from other countries is very difficult. The contracts that were signed at the state level between AM-RU were delivered with MOD jets. Only part of it was delivered by Patron Davo. //

Davit Tonoyan also denies wrongdoing. He was arrested today for 2 months after the court's approval.

https://armenpress.am/arm/news/1064389.html https://armenpress.am/arm/news/1064430.html https://youtu.be/xT-qAo5xMig https://factor.am/423152.html https://factor.am/423176.html https://factor.am/423351.html

no one except Azeris attended the expo organized by Azerbaijan at PACE on Wednesday

... noted Azeri outlets. The expo was dedicated to the 880th anniversary of poet Nizami. Marketing, guys, it's all about marketing.

https://factor.am/422980.html

Iran will hold new wide-scale military exercises starting tomorrow

Artillery, armored vehicles, drones, and helicopters will be used in the northwest. Read more about the previous Iranian army drill that rattled Saddam, in Wednesday post.

https://armenpress.am/arm/news/1064406.html

Iran-Azerbaijan diplomatic crisis escalates

Iranian MFA expressed dissatisfaction with the statements and actions coming from Azerbaijan. While issuing the certificate to the new Azeri ambassador to Iran, the MFA expressed dissatisfaction with Saddam's decision to take two Iranian cargo drivers hostage on the Syunik road. Saddam had earlier admitted that the drivers were captured because Iran wouldn't stop delivering cargo to Artsakh.

Iranian MFA was also surprised by the negative comments coming from Azerbaijan, about Iran's decision to hold army exercises near Azeri borders. He repeated that it's Iran's sovereign right and pointed to "Zionist" activities near its borders. [Azerbaijan is an Israeli ally].

https://armenpress.am/arm/news/1064481.html

Foreign Minister Mizoyan met Iranian ambassador Abbas

Mirzoyan: we effectively cooperate on multiple platforms. The newly appointed governments in both our countries will give a new impetus to the AM-IR relations. Let's increase trade to $1B.

Azerbaijan's provocations and aspirations towards the sovereign territory of Armenia are preventing peace and development in the region. Armenia highly values Iran's stance on the territorial integrity of Armenia. //

https://armenpress.am/arm/news/1064473.html

Russian Foreign Ministery when asked about Saddam running his mouth about 'Zangezur corridor':

Confrontational statements do not help to overcome existing differences. It is extremely important to create the conditions for finding mutually acceptable solutions. Both parties have expressed a desire to open a new page in the relations. We will focus on those positive points.

Russian Foreign Ministery about the efforts to restore all communication routes in the region:

The AM-RU-AZ efforts continue at the deputy Premier level *(January 11 format)*.

https://armenpress.am/arm/news/1064479.html https://armenpress.am/arm/news/1064474.html

Rafik Harutyunyan wins gold medal in U23 European Weightlifting Championship

https://factor.am/423042.html

Levon Aronian lost the match against Azerbaijan's Radjabov during the Champions Chess Tour

He maintains the 3rd position, trailing behind Carlsen and So.

https://www.panarmenian.net/arm/news/295810/

VIDEO: firefighters explain how they were able to extinguish the wildfire in Arevik park in southern Armenia

https://youtu.be/ZSwttmfbJNQ

COVID stats

7472 tested. 1022 infected. 650 healed. 20 deaths. 13328 active.

https://armenpress.am/arm/news/1064396.html

Jamnews: countries with the highest infection rates

Georgia 9th

Armenia 48th

Azerbaijan 100th

https://www.armtimes.com/hy/article/222007

singer Hayko's music is playing in Metro and other public areas as tribute, after his death from COVID

The broadcasting began in the morning. Hayko, one of the most famous singers of Armenia, died yesterday from COVID after fighting in ICU for two weeks. He was unvaccinated, contrary to rumors from anti-vax activists who claimed that he died after/because of a vaccine.

His music will all play in Republic Square today and tomorrow. "He left at a prosperous age, leaving his song unfinished," said Mayor Marutyan.

https://armenpress.am/arm/news/1064393.html https://armenpress.am/arm/news/1064395.html

comments from Dr. Ruben Stepanyyan from Astghik hospital:

A 30yo woman had died just before singer Hayko. Numerous deaths among people under 50. It makes you feel powerless every single time when you do everything possible without any positive outcome. All of this could have been prevented.

People who promote vaccine hesitance by any means are responsible for the psychological torture that doctors are going through. It's time to criminalize this type of propaganda. //

https://www.armtimes.com/hy/article/221976

COVID can damage the vision

Malyan Ophthalmology Center chief: we're seeing a rise in the number of patients who gained vision problems from COVID. The most common issue is conjunctivitis, but there are also serious cases with inflammation of the eye socket, thrombosis in the eye, and sometimes even blindness.

The doctors' job has gotten more difficult because many patients, especially elderly ones, often delay treatment, leading to further complications. If you have severe COVID and have to receive hormones, its long-term use can worsen cataracts, for example. *[psst, vaccine is better]* //

https://armenpress.am/arm/news/1064455.html

Lithuania is sending 50,000 Maderna vaccines to Armenia

This will be the first Maderna batch for Armenia. Moderna co-founder Noubar Afeyan had earlier spoken about the legal limitations in the U.S. about exporting the vaccine to other states.

Lithuanian Premier: Lithuania will continue to share vaccines with countries for which, unlike EU member states, vaccines are more difficult to obtain. We're glad we can share it with the citizens of Armenia because they were forced to wait much longer than our citizens. //

Armenia recently imported special refrigerators that will allow for the storage of Pfizer. That one is coming soon.

I know Maderna is with an "O". It's just that /r/HermanCainAward has permanently damaged my brain. DO NOT VISIT.

https://armenpress.am/arm/news/1064423.html

PHOTO: relax and take a look at these trees, forget about COVID

https://mossandfog.com/remarkable-trees-throughout-the-world/

farmers gathered in Gegharkunik to learn about technologies that can reduce water use

The governor's office invited the representatives of the Research Center for Ecology and Organic Agriculture, who studied the climate/soil near lake Sevan and presented technologies that can boost the yield.

The technology was implemented in 22 farms this year. If it's applied widely, it can eliminate the need to drain 50 million m^3 water from Lake Sevan. *[that's a lot]*

https://armenpress.am/arm/news/1064483.html

students met Education Ministry to educate them on how the education system should educate children

Students proposed ideas on how to make the classes more interesting with games relevant to the subject, with taking trips *(շաութ-աութ թու Օշական գէնգ)*, how to improve ties between schools, etc.

They also discussed the pilot program to implement a credit system. The article doesn't give specifics but it's possibly about the proposed education reforms about making credits transferrable between unis and colleges. More on that on August 20 news.

They discussed the new reforms that began on September 1, in which children in Tavush no longer receive A-F grades until the 5th grade, and instead, receive descriptive remarks from the teacher to encourage their efforts.

https://armenpress.am/arm/news/1064415.html

the number of electric vehicle charging stations will reach 29

EVs have been gaining popularity in Armenia, especially after the recent pro-environment law to exempt them from import taxes.

Ukrainian-Armenian diasporans, on the other hand, have been helping with the installation of more EV chargers across Armenia. There are 19 stations now, with another 10 planned for this year.

You can find them in Yerevan, Ijevan, Aparan, Stepanavan, Abovyan, Sevan, and Jermuk. The project launched in 2019 with the installation of five EV chargers in provinces.

https://www.armtimes.com/hy/article/221896

end of report

The accused are innocent unless proven guilty in the court of law, even if they "appear" guilty.

News archive: http://www.armeniapedia.org/wiki/Daily_Anti-Corruption_Reports

Donations: soldiers' families, humanitarian aid, US tax-deductible donation.

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Link to original report and comments: https://www.reddit.com/r/armenia/comments/pyqrq8/sep302021_government_approves_2022_budget_science/