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RA Minister Of Finance: Armenian Econony Is Now Manageable And Predi

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  • RA Minister Of Finance: Armenian Econony Is Now Manageable And Predi

    RA MINISTER OF FINANCE: ARMENIAN ECONONY IS NOW MANAGEABLE AND PREDICTABLE

    NOYAN TAPAN
    SEPTEMBER 28, 2009
    YEREVAN

    YEREVAN, SEPTEMBER 28, NOYAN TAPAN. "2009 was a difficult year, and
    the whole economy has felt the impact of the crisis. The Armenian
    government worked and continues to work in crisis conditions which
    has considerably affected both the government policy and the budget's
    formation," RA Minister of Finance Tigran Davtian said during the
    discussion of the 2010 draft state budget at the September 28 special
    sitting of the Armenian government.

    In his words, the 2010 budget was developed based on the economic
    indices recorded this year and the forecasts for the remaining period
    of 2009 and next year. The minister said the 18.5% fall of GDP recorded
    now is expected to make about 15% in late 2009 as some stabilization
    tendencies have been observed in the economy since August, and there is
    a hope that they will continue and become more pronounced at the end
    of 2009. It was also mentioned that by forecasts, GDP will amount to
    3 trillion 116 billion drams in late 2009, which is less by about 15%
    as compared to the same index of 2008. There has been a considerable
    decline in taxes and state duties: they will amount to 510-530bn
    drams in late 2009 instead of the envisaged 727bn drams.

    T. Davtian said the budget expenditures will make 900-910bn drams in
    2009 against the programmed amount of 945bn drams. The expenditures
    will be mainly incurred at the expense of budget revenues and loans
    received from international organizations (this year Armenia received
    loans of 60 million USD from the World Bank, 155 million USD from the
    International Monetary Fund, 80 million USD from the Asian Development
    Bank, and 500 million USD from Russia).

    The minister explained the suspension of some expenditures in the past
    months of 2009 by the intention to make the budgetary processes more
    manageable, saying that an attempt was made to balance somewhat the
    decline in revenue collection. Expenses of little importance to the
    economy have been suspended. The amount of important expenses such
    as social expenditures, subsidies, expenses on national security and
    public administration has remained unchanged.

    According to the minister, the budget deficit is forecast to make up
    to 7% in late 2009. Under the law passed by the RA National Assembly,
    the upper limit of the deficit of Armenia's budget has been raised
    to 7.5%. The minister assured those present that everything is done
    to keep the deficit at the envisaged level.
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