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Prime minister: In conditions of global crisis Armenian government
should pass to cruelest economy regime
2009-03-12 14:39:00
ArmInfo. In conditions of the global economic crisis and worsening of
the economic situation in the country, the Armenian government should
pass to the cruelest saving of the public funds, Prime Minister of
Armenia Tigran Sarkisyan said at the government Thursday session in
view of the decision on reallocation of the budget revenue and
expenditure, 2009.
The prime minister said the world economy experiences decay, so, the
government should be ready to implement the worse development scenario.
"In the crisis conditions we have to save and make as much expenses as
we can collect taxes", the PM said. In view of worsening of the
economic situation in Armenia, the country's government made a protocol
decision on Thursday on reallocation of the most risky budget revenue
and expenditure from early to late, 2009, Finance Minister of Armenia
Tigran Davtyan said at the briefing held after the government session.
According to him, as a result of the analysis over the first-two
months, the Finance Ministry has calculated that the State Treasury may
receive less than one is due - 131 bln drams of revenue ($354 mln at
the current average rate). The government decided to reallocate this
revenue from the 1-3 quarters to the 4th quarter. The minister also
said the tax receipts to the country's budget over January-February
reduced as compared with the similar period, 2008, and made up less
than the scheduled level. So, the tax receipts over January, 2009,
reduced by 5 bln drams against January, 2008, and the receipts over
February - by 10 bln drams. "Development of the global economic
situation does not give rise to an optimism, so, the government
resolved to reallocate the most risky revenue", the minister said.
The budget expenditure for 2009 at the amount 93 bln drams ($251 mln)
will be also redistributed by the end of the year. He means revisiting
of expenditure for business trips, buying of the movable property and
real estate and holding of some state events. The protected articles of
the budget will not change, mainly for defence and social needs, the
minister said. He assured that salary of the budgetary sphere workers
will not change. Davtyan added that this decision of the government
will not touch fulfillment of the big pan-Armenian projects in 2009, in
which the government takes part. He means construction of the new
nuclear power block, Iran-Armenia railway and creation of Pan-Armenian
Bank.
He declined to predict further development of Armenian economy in the
present conditions, but beginning from March the government is
expecting certain growth of the business activity and tax revenues in
the budget. Davtyan also said that the approved credits of the IMF $540
mln and of the WB $525mln for the next four years, as well as the
expected stabilizing credit of Russia $500 mln will help Armenia
overcome consequences of the world crisis. Armenia has a good potential
to resist the crisis because of the low plan on deficit of the budget
2009 in an amount less than 1% GDP and low external state debt, which
does not exceed 14-15% of the GDP.
should pass to cruelest economy regime
2009-03-12 14:39:00
ArmInfo. In conditions of the global economic crisis and worsening of
the economic situation in the country, the Armenian government should
pass to the cruelest saving of the public funds, Prime Minister of
Armenia Tigran Sarkisyan said at the government Thursday session in
view of the decision on reallocation of the budget revenue and
expenditure, 2009.
The prime minister said the world economy experiences decay, so, the
government should be ready to implement the worse development scenario.
"In the crisis conditions we have to save and make as much expenses as
we can collect taxes", the PM said. In view of worsening of the
economic situation in Armenia, the country's government made a protocol
decision on Thursday on reallocation of the most risky budget revenue
and expenditure from early to late, 2009, Finance Minister of Armenia
Tigran Davtyan said at the briefing held after the government session.
According to him, as a result of the analysis over the first-two
months, the Finance Ministry has calculated that the State Treasury may
receive less than one is due - 131 bln drams of revenue ($354 mln at
the current average rate). The government decided to reallocate this
revenue from the 1-3 quarters to the 4th quarter. The minister also
said the tax receipts to the country's budget over January-February
reduced as compared with the similar period, 2008, and made up less
than the scheduled level. So, the tax receipts over January, 2009,
reduced by 5 bln drams against January, 2008, and the receipts over
February - by 10 bln drams. "Development of the global economic
situation does not give rise to an optimism, so, the government
resolved to reallocate the most risky revenue", the minister said.
The budget expenditure for 2009 at the amount 93 bln drams ($251 mln)
will be also redistributed by the end of the year. He means revisiting
of expenditure for business trips, buying of the movable property and
real estate and holding of some state events. The protected articles of
the budget will not change, mainly for defence and social needs, the
minister said. He assured that salary of the budgetary sphere workers
will not change. Davtyan added that this decision of the government
will not touch fulfillment of the big pan-Armenian projects in 2009, in
which the government takes part. He means construction of the new
nuclear power block, Iran-Armenia railway and creation of Pan-Armenian
Bank.
He declined to predict further development of Armenian economy in the
present conditions, but beginning from March the government is
expecting certain growth of the business activity and tax revenues in
the budget. Davtyan also said that the approved credits of the IMF $540
mln and of the WB $525mln for the next four years, as well as the
expected stabilizing credit of Russia $500 mln will help Armenia
overcome consequences of the world crisis. Armenia has a good potential
to resist the crisis because of the low plan on deficit of the budget
2009 in an amount less than 1% GDP and low external state debt, which
does not exceed 14-15% of the GDP.