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© 2002 International Monetary Fund

February 2002

IMF Country Report No. 02/37

Republic of Armenia: Report on the Observance of Standards and Codes—Fiscal Transparency Module

This Report on the Observance of Standards and Codes on Fiscal Transparency Module for Republic of Armenia was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on February 15, 2002. The views expressed in this document are those of the staff team and do not necessarily reflect the views of the government of Republic of Armenia or the Executive Board of the IMF.

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Report on the Observance of Standards and Codes (ROSC) Fiscal Transparency Module

Prepared by the Fiscal Affairs Department

Approved by John Odling-Smee and Ke-young Chu

February 15, 2002

Executive Summary

This report provides an assessment of fiscal transparency practices in the Republic of Armenia against the requirements of the IMF Code of Good Practices on Fiscal Transparency. The report is based on the authorities’ response to the IMF fiscal transparency questionnaire, and on additional information provided to the mission.

The Republic of Armenia has made substantial progress in recent years to improve a number of aspects of fiscal transparency. It has achieved significant results, especially regarding the legal framework and reporting. This progress will be furthered when the draft laws currently under consideration by the authorities,1 especially the treasury law, the law on state debt, and the disclosure requirements on high-ranking officials’ property and income, are effectively implemented.

However, substantial weaknesses remain in some areas. In particular, a sustained top-level commitment will be necessary to further clarify what remains of the involvement of the government in the economy and to enhance reporting capacity in that regard. Audit functions, and especially the internal audit function, need to be strengthened to provide adequate controls. Additional information needs to be provided with the budget presentation, in order to provide a clear understanding of contingent liabilities and fiscal risks. Procurement and employment systems need clearer rules, and planned reforms in this area must be completed.

More generally, the achievement of a higher standard of fiscal transparency will require an increased focus on the implementation phase of new legal frameworks and planned reforms. In particular, the proposal to create new public agencies to increase the autonomy of some government functions (as regulator or as service provider) should be very carefully thought through to avoid endangering reporting and accountability.


  • Abbreviations and Acronyms

  • I. Introduction

  • II. Description of Practice

    • A. Clarity of Roles and Responsibilities

    • B. Public Availability of Information

    • C. Open Budget Preparation, Execution, and Reporting

    • D. Assurances of Integrity

  • III. IMF Staff Commentary

Abbreviations and Acronyms


Central Bank of Armenia


General Data Dissemination System


Government Financial Statistics


Ministry of Finance and Economy


Ministry of State Revenue


Ministry of Territorial Administration


Medium-Term Expenditure Framework


National Statistic Service


Project Implementation Unit


State Fund for Social Insurance


System of National Accounts


Special Privatization Account


Treasury General Ledger


Treasury Single Account

Republic of Armenia: Report on the Observance of Standards and Codes-Fiscal Transparency Module
Author: International Monetary Fund