On 29 March, during the meeting with the First deputy Finance Minister organised in the scope of the EU funded “Commitment to Constructive Dialogue” project, the Secretariat of the Civil Society Organizations Coalition Constructive Dialogue Network, Armenian Lawyers’ Association (ALA) discussed the issue of involvement of the civil society organizations in the budget process. In particular, the ALA had expressed willingness to coordinate the involvement of sectoral CSOs and co-operation with public authorities and territorial authorities to make the budget application process more transparent, inclusive and therefore more effective.
Taking into account the aforementioned, with the mediation of the Ministry of Finance, the Prime Minister instructed the state agencies to conduct public discussions on Draft Medium Term Expenditure Framework (MTEF) for 2020-2022, including the applications for budget financing for 2020, as well as the cost estimates based on the applications compiled for each body with the involvement of CSOs
The Armenian Lawyers’ Association had suggested that a separate provision in the work plans envisaged by the RA Prime Minister’s decision to launch a budgetary process in the coming years be provided, whereby the involvement of sectoral CSOs in the process of preparing budget requests (prior to submitting applications to the Ministry of Finance) would be mandatory.
In response to the ALA letter, the Ministry of Finance has stated that a draft schedule approved by the Prime Minister of the Republic of Armenia on 2021 Budgetary Process will propose that, prior to submitting budget applications to the Ministry of Finance, applicants should submit their applications, including accounting justifications for the discussion with CSOs by organizing public discussions.
Thus, on 9 January, 2020, Prime Minister Nikol Pashinyan signed a decision to start the budget process for 2021.
According to the decision, according to point 21 of the schedule for the implementation of the draft state budget for 2021, the applicant authorities should, by 10 April, 2020, discuss budget proposals with the interested civil society organizations in their areas of competence during the development of the Draft MTEF (including State Budget 2021), and approve the results (including a summary of the acceptance or rejection of the submitted comments and suggestions) of the discussions.
The Prime Minister’s decision specifically states:
In accordance with Article 21 (1) of the “RA Law on the Budgetary System of the Republic of Armenia,” for the purpose of commencing the budgetary process of the Republic of Armenia of 2021:
- To approve the timetable for the implementation of the RA State Budget 2021 for the State Mid-Term Expenditure Framework 2021-2023 and the draft state budget for the 2021 of the RA in accordance with the Annex.
- Provide that for the purposes of this Decision:
1) The chief manager of budget allocations (hereinafter referred to as CMB) are the public authorities and territorial administration bodies of the Republic of Armenia, which are the chief manager of budget allocations provided for by the RA Law on State Budget 2020;
2) Compulsory costs are the costs required to fulfill the obligations arising from the provision of public goods and services or other forms of state interference established by the laws and international treaties of the Republic of Armenia;
3) Discretionary expenses are expenses required for fulfillment of obligations related to the provision of public goods and services or other forms of state interference established by the decisions of the Government of the Republic of Armenia or by the Departments;
4) Continuous expenditures are the discretionary expenditures approved by the previous mid-term expenditure program or the Law on State Budget of the Republic of Armenia and continue in the following years;
5) Existing expenditure liabilities are mandatory and discretionary spending commitments established by the previous mid-term expenditure program or the Law on State Budget of the Republic of Armenia;
6) New initiatives are cost proposals that suggest changes in the services or other interventions based on existing spending commitments, as well as changes in the scope of beneficiaries.
- To the heads of RA public authorities and territorial administration bodies:
1) Ensure the preparation of mid-term expenditure plans for 2021-2023 (including budgetary financing for 2021) and submit them to the Ministry of Finance within the timeframe specified in paragraph 1 of this Decision in accordance with the methodical instructions provided by the latter;
2) to submit to the Ministry of Finance within five days of the adoption of the Law on State Budget of the Republic of Armenia 2021 the plan of purchases to be made for the state needs at the expense of budgetary allocations in 2021;
3) To submit to the Ministry of Finance of the Republic of Armenia the designed expenditures for construction costs in 2021, approved by the established order and having received an approved design estimates, including a positive expert opinion.
- To propose to the Chairmen of the Committees of the National Assembly of the Republic of Armenia:
1) To carry out with relevant CMBs and the Ministry of Finance of the Republic of Armenia, discussions of budgetary programs included in the preliminary version of the RA draft law on State Budget of 2021 stipulated by point 32 of the schedule set forth in annex hereto;
2) to submit to the relevant CMBs, within the time period specified in paragraph 33 of the Appendix to this Decision, the recommendations made by the Members of the National Assembly of the Republic of Armenia as a result of the discussions referred to in sub-paragraph 1 of this paragraph.
- To recommend the Chief of Staff of the President of the Republic of Armenia, Chief of the Staff of the National Assembly of the Republic of Armenia, the President of the Constitutional Court of Armenia, the President of the Supreme Judicial Council of the Republic of Armenia, the Chairman of the Investigative Committee, the Head of the Special Investigation Service, the RA Prosecutor General, the Chairman of the Audit Chamber, the RA Human Rights Defender, Chairman of the Public Services Regulatory Commission of the Republic of Armenia, Chairman of the Central Electoral Commission of the Republic of Armenia, Chairman of the Commission on Television and Radio revising, Chairman of the State Commission for Protection of Economic Competition of the Republic of Armenia, the Chairman of the Board of the Public Television and Radio Company of the Republic of Armenia, and the Governor of the Central Bank to be guided by the schedule established in paragraph 1 of this decision.