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SPECIFIC WEIGHT OF BUDGET DEFICIT IN GDP TO BE RAISED TO 7,5%
ArmInfo
2009-06-02 13:12:00
Specific weight of the budget deficit in Armenia's GDP will be raised
from 5% to 7,5%. The relevant proposal, advanced by the Armenian
government, was introduced by Finance Minister of Armenia Tigran
Davtyan in the parliament today.
Having introduced the draft law 'On Alterations and Amendments to the
Law 'On Budget System' in the first reading, T. Davtyan emphasized that
the necessity of introducing alterations to the law has been aimed
at activating the process of state funding of the social projects on
mitigation of consequences of the global economic crisis. Naturally,
the crisis affected the revenue side of Armenia's state budget and
caused its reduction. In view of this, it is scheduled to attract
considerable funds to continue the social programmes. The government of
Armenia is negotiating with the international financial institutes and
states for attraction of serious credit funds, that has given occasion
to introduction of alterations to the law. However, according to the
minister, it does not mean that the government will reach out for the
ceiling of 7,5%. He added that all the programmes of social nature,
including housing construction in the area of Spitak earthquake,
will be implemented without fail. T. Davtyan recalled that 1% budget
deficit makes up about 31 bln drams in Armenia's GDP. So, 2,5%
increase of the deficit rate will make up about 70 bln drams.
Moreover, the minister said, the government does not intend to issue
public securities for redemption of the budget deficit. The budget
deficit will be funded on four directions: credit funds of the World
Bank, International Monetary Fund, Asian Development Bank and the
Russian Federation. Credit funds at the rate of $800 mln will be
attracted in the current year. The attracted funds will allow to
successfully implement the available programmes and reduce the bank
interest rates. The created interdepartmental working group carries
out a permanent monitoring of macroeconomic stability in Armenia
which indicate growth of the budget deficit as of today by 6-10%.
The executive power has already frozen some programmes to the
total sum of 93 bln drams and postponed their implementation for
the 4th quarter, 2009. T. Davtyan emphasized that the first signs
of stabilization of Armenia's economy will become apparent in 2010,
by the governmental forecasts.
ArmInfo
2009-06-02 13:12:00
Specific weight of the budget deficit in Armenia's GDP will be raised
from 5% to 7,5%. The relevant proposal, advanced by the Armenian
government, was introduced by Finance Minister of Armenia Tigran
Davtyan in the parliament today.
Having introduced the draft law 'On Alterations and Amendments to the
Law 'On Budget System' in the first reading, T. Davtyan emphasized that
the necessity of introducing alterations to the law has been aimed
at activating the process of state funding of the social projects on
mitigation of consequences of the global economic crisis. Naturally,
the crisis affected the revenue side of Armenia's state budget and
caused its reduction. In view of this, it is scheduled to attract
considerable funds to continue the social programmes. The government of
Armenia is negotiating with the international financial institutes and
states for attraction of serious credit funds, that has given occasion
to introduction of alterations to the law. However, according to the
minister, it does not mean that the government will reach out for the
ceiling of 7,5%. He added that all the programmes of social nature,
including housing construction in the area of Spitak earthquake,
will be implemented without fail. T. Davtyan recalled that 1% budget
deficit makes up about 31 bln drams in Armenia's GDP. So, 2,5%
increase of the deficit rate will make up about 70 bln drams.
Moreover, the minister said, the government does not intend to issue
public securities for redemption of the budget deficit. The budget
deficit will be funded on four directions: credit funds of the World
Bank, International Monetary Fund, Asian Development Bank and the
Russian Federation. Credit funds at the rate of $800 mln will be
attracted in the current year. The attracted funds will allow to
successfully implement the available programmes and reduce the bank
interest rates. The created interdepartmental working group carries
out a permanent monitoring of macroeconomic stability in Armenia
which indicate growth of the budget deficit as of today by 6-10%.
The executive power has already frozen some programmes to the
total sum of 93 bln drams and postponed their implementation for
the 4th quarter, 2009. T. Davtyan emphasized that the first signs
of stabilization of Armenia's economy will become apparent in 2010,
by the governmental forecasts.