By Samvel Avagyan

The Armenian Government decided to terminate the payment of bonuses on buyer's checks in the 4th quarter of 2010. The main reason is the lack of budgetary funds. A total of 1.37 billion AMD (U.S. $3.8 million) have been budgeted for bonus payments this year. The funds, however, nearly ran out in the first half of this year. A total of 655 million AMD (U.S. $1.8 million) were allocated from the reserve funds for this purpose in the third quarter.

During the period under review the retail trade did not register any downward tendencies as far as shadow is concerned. Specifically, the retail trade sector registered a 0.7% increase this January-October. However, the main aim of cash bonuses was to reduce the shadow so as the budget might receive more funds than would be spent on cash bonuses. Government decided to replace cash bonuses with prizes. However, this measure can hardly prove its worth. There are no grounds to consider Armenians a gambler nation.

P.S. The Vice-Chief of the RA State Revenue Committee held a news briefing on the new bonus payment procedure. The TV companies that are hardly ever critical of the Armenian Government were invited. The Committee is probably avoiding being asked pointed questions.