of July 21, 1997 No. ZR-137
About the budget system of the Republic of Armenia
Accepted by National Assembly of the Republic of Armenia on June 24, 1997
This Law determines the budget system of the Republic of Armenia and regulates the budget process.
Operation of this Law extends to budgets of all levels of the budget system of the Republic of Armenia.
In sense of this law:
1. Budget incomes is the money arriving in state and communal budgets according to the legislation of which state bodies and local government bodies dispose respectively (except for the means received from alienation of the non-financial assets listed in part 7 of this Article and the means classified by this Law to sources of financing of deficit (shortage) of budgets).
2. Expenses of the budget is the money allocated from the relevant budgets for the purpose of ensuring financing of legislatively referred functions state and local government bodies (except for loan granting and loans, repayments of the involved borrowed funds, and also cases of participation in shares and the capital and acquisition of other securities).
3. Expenses in the area of capital or non-financial assets are those expenses provided within programs of the state and communal value which lead to creation (acquisition) of the non-financial assets listed in part 7 of this Article or to increase in their cost.
4. Current expenses are those expenses which are not included in capital expenditures.
5. Borrowed funds are the means received by budgets from distribution of the securities issued by the state or communal and also in type of loan and the budget loans.
6. Financial assets are shares, other equity participation and other securities of the legal entities belonging to the state or community on the property right, the budget credits and loans granted from budgets and also free remaining balance of budgetary funds for the beginning of year.
7. Non-financial assets is the property, plant and equipment (fixed assets) belonging to the state or community on the property right high-valuable assets, not made assets, inventory items stored in storages of the state strategic and communal importance.
8. Receipts in the budget is the money arriving in state or communal budgets. Receipts include budget incomes, free remaining balance of budgetary funds for the beginning of year, money of the budget credits granted from the budget in the budget and from return of the loan amounts, received in non-cash type from alienation of other financial assets and non-financial assets, and also involved loan and others, the law assigned to this budget.
9. The budget exits is the money allocated from state and communal budgets for implementation of competences, carried to the state and local government bodies by the Constitution and the laws. The budget exits include budgeted expenses, and also acquisitions of financial assets (except for free remaining balance of budgetary funds for the beginning of year) and repayments of the involved borrowed funds.
10. Budgetary appropriations are the means provided by the legal act approving the budget in the area of the main managers of budgetary appropriations.
11. The legal act approving the budget is the Law on the government budget of this year adopted by National assembly as regards the government budget, and as regards the budget of community – the decision on the budget of community made by the Council of Elders of community. The legal act approving the budget establishes receipts and releases of the relevant budget for this year, distribution of budgetary appropriations on their main managers, and also other normative provisions which are effective only in that period for which the budget is accepted (if other is not provided by the legal act approving the budget).
12. The main managers of budgetary appropriations are the state bodies and (or) public institutions noted in departmental structure of releases of the government budget of this year through the assignments provided by the government budget in the assignments established on their line, and through the assignments provided by the budget of community – the head of community. For the purpose of increase in productivity of implementation of the programs provided by the budget, powers of managers the law or the decision of the government of the Republic of Armenia (if these programs are provided in the government budget) or the decision of the Council of Elders of community (if these programs are provided in the budget of community), can be carried to the allocated division according to state body or communal managerial organization, to other organization. Powers and obligations of the main managers of budgetary appropriations are established by the legislation.
13. The state authorized body is the state body of the Government of the Republic of Armenia (further - the Government) authorized in the sphere of management of finance.
14. Target budget receipts are:
a) within the powers conferred to it by the law provided according to the bargain concluded between the government (or community) and providing the last means, for the purpose of execution of certain budget exits, darimy or provided to the government (or community) in type of loan (or from monetization of the goods provided in gift or in type of loan) the amounts arriving in state (or communal) the budget,
b) the amounts arriving in the government or communal budget through obligatory payments for the purpose of financing of separate budget exits
15. The trust budget fund is set of separate types of the receipts (or their accurately established part) allocated by the law or decisions of the government or Council of Elders of community from structure of the budget receipts which are legislatively attached to the relevant budget and the budget exits financed exclusively at their expense. The trust budget fund is component of the relevant budget.
16. Off-budget (including - deposit) accounts are calculation, acting on the single personalized treasurer account of the public or communal institution, out of calculation of means of the government budget and communal budgets, and also the accounts existing in bank system. Off-budget accounts are opened and are intended:
a) for execution and the isolated accounting in some cases target budget receipts and the expenses made at their expense (including receipts and expenses of trust budget funds);
b) for accumulating of the loans granted to the Republic of Armenia by foreign states and the international organizations in trade dress and the means arising from monetization of grants;
c) for obtaining addressed to bodies of forced execution judicial, pretrial investigation and on the basis of regulations procedural and enforcement proceeding cash (or currency) the means collected, confiscated, confiscated, taken on storage or as a deposit from legal entities and physical persons for ensuring their subsequent transfer to the receivers determined on the basis of the law;
d) addressed to the state authorized body, for consolidation and the deposit investment of capital arising from deposit investment of temporarily available funds of budgets, privatization of the state share in the commercial organizations and also for assistance to implementation of the tax and budget policy and debt management policy of the Government (including risk managements of refinancing of debt of the Government);
e) addressed to the public or communal institution, for ensuring collection and return of the advance payments connected with the organization of the biddings;
e) addressed to public institution, for payment and settlement servicing of legal entities;
g) addressed to state bodies, for accumulating of the means received in payment type or assignments for elimination of the negative consequences resulting from the economic activity made by certain business entities in some industries and for the purpose of financing of the expenses connected with risk management, paid by these subjects;
h) addressed to the public and communal institutions, for accumulating of means from the sources provided by the law or the decision of the government (the Council of Elders of community) in other purposes.
17. The program is logical group of actions of implementation of the policy aimed at achievement of single resulting effect (further – program actions).
17.1. The program is logical group of actions for realization, politicians of the same purpose directed to achievement (further - program actions).
17.2. Each program includes the actions carried only to one - to the main component directed to this purpose.
17.3. The program purpose - specific social or public objective to which solution the program is directed.
18. Action of the program is intervention of the state which can act in the form of rendering services by state bodies, state or other organizations, performance of works, provision of goods or transfers, creation (acquisition) or alienation of capital (non-financial) and financial assets, and also others, established by the law.
18.1. The action of the program is the intervention of the state performed for the purpose of realization of policy within the program which is directed to implementation of the purpose established for this program.
19. Resulting effects are those changes social, economic and the environment which the state by intervention in the form of actions of programs for society aims to reach.
19.1. The affected settlement is community which, according to part 2 of article 198 of the Tax Code of the Republic of Armenia, borders on the territory allocated to the organization payer of royalty with the act of mountain branch.
19.2. Municipal assignments are the amount credited in share budgets of communities which are target means and are used for implementation of programs of social and economic development of community with priority for the affected settlement.
20. Transfers are financial and non-financial resources, gratuitously and irretrievable provided to the beneficiaries which do not have the status of organization or to budgets of other level of the budget system.
21. The definitions given in parts 17-20 of this Article belong only to stipulated in Item "" of part 2 Articles 16, part 4 of Article 23 and the Item "g-1" of part 2 of article 25 of this law to process of creation of the documents representing budgeted expenses in program format.
22. Assessment of the budget program is systematic, objective and comprehensive analysis of programs and actions for the purpose of detection of their efficiency and effectiveness.
23. Effectiveness shows in what degree the realized programs and actions achieved the planned objectives and resulting effects.
1. State and local authority budgets are the financial program of forming and expenditure of necessary money for certain period for implementation by the state and local government bodies of the powers referred to their competence by the Constitution and the laws.
2. Budgets are constituted, considered and accepted according to the procedure, established by the Constitution and the law.
1. The budget system of the Republic of Armenia - the set of budgets of the following two levels based on the economic relation of the Republic of Armenia and state system of the Republic of Armenia, regulated by rules of law:
a) the first level - the government budget;
b) the second level - local authority budgets.
2. State, compulsory social insurance and local authority budgets are based on single financial monetary and tax state policy.
3. The budget system of the Republic of Armenia is based on the following general principles:
a) unities of the budget system;
b) differentiations of the budget receipts and costs between different levels of the budget system;
c) independence of budgets;
d) completeness of reflection of the budget receipts and costs;
e) balances of budgets;
e) general (cumulative) covering of budget costs;
g) efficiency of use of budgetary funds;
h) publicity of budgets;
i) targeting and special-purpose character of budgetary funds;
j) realities of budgets.
The government budget and local authority budgets (further - budgets) constitute the consolidated budget of the Republic of Armenia which is the corresponding code of receipts - the money which is created (created) of the sources assigned by the law to the budgets listed in this Article (without receipts on the interbudget transfers) and expenses - the money spent (spent) on certain law to the directions (without costs on the interbudget transfers).
1. In sense of this Law budgetary institutions are the public and local government offices financed from budgets.
2. The expense budget on content of state body within overall appropriations affirms his head according to the procedure, established by the law and other legal acts.
3. The expense budget on content of local government body within the overall appropriations approved by the local authority budget affirms the head of municipality according to the procedure, established by the law and other legal acts.
4. The expense budget on content of the organization which is not considered as state body and local government body within overall appropriations affirms the head of higher body of management according to the procedure, established by the law and other legal acts.
1. The budget process - the activities of state bodies and local government bodies for creation, consideration, approval and execution of budgets for each fiscal year regulated by the law, according to annual statements on them.
2. Budget statements are constituted according to the program of activities of the Government, and also development programs of municipalities.
3. In the Republic of Armenia fiscal year begins since January 1 every year and comes to the end on December 31 the same year.
Within the first month of the year following after fiscal year according to the decision of the Government registration of transactions according to obligations of prior fiscal year (further - final turnover) can be continued if the Law on the government budget of this year does not provide other.
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