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2007 Assessment

Armenia: Integrity Indicators Scorecard

Armenia: Integrity Scorecard Report > Sub-Category: Budget Processes
Indicators		Score
37	Can the legislature provide input to the national budget?	67
38	Can citizens access the national budgetary process?	17
39	In law, is there a separate legislative committee which provides oversight of public funds?	100
40	Is the legislative committee overseeing the expenditure of public funds effective?	19

Indicator and sub-Indicator Details

Can the legislature provide input to the national budget?

37a: In law, the legislature can amend the budget.

Score:

YES

Comments:

References: The Constitution of the Republic of Armenia www.parliament.am www.arlis.am

37b: In practice, significant public expenditures require legislative approval.

Score:

100

$Scoring Criteria :: 100 Score Criteria: All significant government expenditures (defined as any project costing more than 1% of the total national budget), must be approved by the legislature. This includes defense and secret programs, which may be debated in closed hearings. 50 Score Criteria: Most significant government expenditures (as defined) are approved by the legislature, but some exceptions to this rule exist. This may include defense programs, an executive\'s personal budget, or other expenses. 0 Score Criteria: The legislature does not have the power to approve or disapprove large portions of the government budget, or the legislature does not exercise this power in a meaningful way.$

Comments:

References: Interview with Maria Vardanyan, senior expert of the Education Commission of the National Assembly of Armenia (August 15, 2007) Media reports

37c: In practice, the legislature has sufficient capacity to monitor the budget process and provide input or changes.

Score:

100

Comments: The Chamber of Control monitors the budget process.

References: The Law on the Chamber of Control www.parliamenta.am Interview with Maria Vardanyan, senior expert of the Education Commission of the National Assembly of Armenia (August 15, 2007)

Can citizens access the national budgetary process?

38a: In practice, the national budgetary process is conducted in a transparent manner in the debating stage (i.e. before final approval).

Score:

100

Comments: There is a formally transparent deliberation on the budget and citizens can watch it on TV or listen to it on the radio, however, major budget modifications may be negotiated in separate, closed sessions.

References: Interview with Maria Vardanyan, expert of the Education Commission of the National Assembly of Armenia (August 15, 2007) Media reporting

38b: In practice, citizens provide input at budget hearings.

Score:

100

Comments: In Armenia NGOs make some suggestions and recommendations, however their impact is minimal at budget hearings.

References: Interview with Maria Vardanyan, expert of the Education Commission of the National Assembly of Armenia (August 15, 2007) Media reports

Peer Review Comments: In reality there are rarely active citizens that will find the time, will, courage and common sense to take actions in this direction. Civic activism is practically absent in this regard. The NGOs, or some political groups, although again rare, may take an initiative, but individuals do not even recognize their ownership, they do not realize the strategic role they have in the society.

38c: In practice, citizens can access itemized budget allocations.

Score:

100

Comments: Citizens cannot access any itemized list of budget allocations because the Armenian state budget, income and expenses are publicized in general, but not according to separate institutions. Itemized list of budget allocations are not available to citizens.

References: Interview with Maria Vardanyan, senior expert of the Education Commission of the National Assembly of Armenia (August 15, 2007) Media reports

In law, is there a separate legislative committee which provides oversight of public funds?

39: In law, is there a separate legislative committee which provides oversight of public funds?

Score:

YES

Comments:

References: The Law of Chamber of Control of Parliament of the Republic of Armenia www.parliament.am

Is the legislative committee overseeing the expenditure of public funds effective?

40a: In practice, department heads regularly submit reports to this committee.

Score:

100

Comments: On a quarterly and annual basis, the Ministries submit the reports to the government of Armenia on the budget execution. The government summarizes these reports and annually submits the final report to the Parliament of Armenia, which, as a rule, adopts it.

References: Interview with Maria Vardanyan, senior expert of the Education Commission of the National Assembly of Armenia (August 15, 2007) Media reporting

Peer Review Comments: The reporter's comments indicate that some form of accountability is present.

Peer Review Comments: I personally know that this procedure is very strictly followed, and the comment of the Social Scientist says that it is done on regular basis.

40b: In practice, the committee acts in a non-partisan manner with members of opposition parties serving on the committee in an equitable fashion.

Score:

100

$Scoring Criteria :: 100 Score Criteria: The committee is comprised of legislators from both the ruling party (or parties) and opposition parties in a roughly equitable distribution. All members of the committee -- including opposition party members -- are able to fully participate in the activities of the committee and influence the committee\'s work to roughly the same extent as any other member of the committee. 50 Score Criteria: The committee is comprised of legislators from both the ruling party (or parties) and opposition parties although the ruling party has a disproportionate share of committee seats. The chairperson of the committee may be overly influential and curb other members\' ability to shape the committee's activities. 0 Score Criteria: The committee is dominated by legislators of the ruling party and/or the committee chairperson. Opposition legislators serving on the committee have in practice no way to influence the work of the committee.$

Comments:

References: Interview with Maria Vardanyan, senior expert of the Education Commission of the National Assembly of Armenia (August 15, 2007) Media reports

40c: In practice, this committee is protected from political interference.

Score:

100

$Scoring Criteria :: 100 Score Criteria: This committee operates independently of the political process, without incentive or pressure to render favorable judgments on politically sensitive issues. Investigations are rarely praised or criticized by political figures. 50 Score Criteria: This committee is usually independent but is sometimes influenced by negative or positive political incentives. This may include public praise or criticism by the government. 0 Score Criteria: This committee is commonly influenced by personal or political forces or incentives. This may include conflicting family relationships, professional partnerships, or other personal loyalties that ultimately influence the committee\'s behavior and decision-making. Negative incentives may include threats, harassment or other abuses of power by the government.$

Comments: The committee is commonly influenced by political forces, particularly by the Republican Party and the president of Armenia.

References: Interview with Maria Vardanyan, expert of the Education Commission of the National Assembly of Armenia (August 15, 2007) Media reports

Peer Review Comments: How can this committee not be influenced by political interference? After all, it consists of elected members of parliament. I find the question a bit strange.

40d: In practice, when necessary, this committee initiates independent investigations into financial irregularities.

Score:

100

Comments: The committee initiates some investigations but they are slow and not effective because the pro-government parties and the president are not interested in the results of these investigations.

References: Interview with Maria Vardanyan, senior expert of the Education Commission of the National Assembly of Armenia 9August 15, 2007) Media reports