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Government Approves 2010 Draft State Budget Of Armenia

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  • Government Approves 2010 Draft State Budget Of Armenia

    GOVERNMENT APPROVES 2010 DRAFT STATE BUDGET OF ARMENIA

    NOYAN TAPAN
    SEPTEMBER 28, 2009
    YEREVAN

    YEREVAN, SEPTEMBER 28, NOYAN TAPAN. At the September 28 special
    sitting of the Armenian government, the 2010 draft state budget of
    the Republic of Armenia was discussed and approved.

    Minister of Finance Tigran Davtian said that based on opinions of
    Armenian and foreign experts, a 1.2-1.3% growth of GDP is forecast
    for 2010, and in this case GDP will amount to 3 trillion 214 billion
    drams. The index deflator - the inflation of goods made in Armenia
    is forecast at 2%, the budget revenues are forecast to make 676.7bn
    drams, including taxes and state duties of 533.5bn drams and social
    payments of 105.2bn drams. The overall budget is forecast to make
    701.7bn drams, with expenditures amounting to 884.7bn drams and the
    deficit making 183bn drams. The deficit/GDP ratio will make 5.69%. The
    budgets of communities will amount to 82.5bn drams.

    According to the minister, the 2010 budget expenditures will be less
    by 85bn drams than this year, although 2009 expenditures have been
    also reduced.

    Despite this fact, like in 2009, the social, scientific expenditures,
    as well as expenses on national security and other urgent purposes
    in 2010 will remain at the same level. This year most of the budget
    expenditures were incurred at the expense of foreign resources, whereas
    in 2010 it will be impossible to spend the same amounts: first of all,
    it is necessary to limit the amount of resources attracted so that
    the budget deficit will be within the manageable limits. Besides,
    the sums (quite large) for servicing the debts received so far will
    be added in the 2010 budget.

    Among expenditures to be reduced next year are capital and public
    administration expenses. No equipment and vehicles will be purchased
    for the state machinery, while the expenses on business trips and
    official state receptions will halve. A number of expenditures:
    salaries of civil servants, community subsidies, and sums for debt
    servicing will increase. By the 2010 draft budget, the budget decicit
    is envisaged to make 183bn drams and has to be covered from foreign
    and domestic sources.

    T. Davtian said that in 2010 the government will try to attract
    budgetary loans of 7.5bn drams from the World Bank and loans of 150
    million USD from the IMF: negotiations are being conducted with the WB,
    and an agreement has already been signed with the IMF. One domestic
    source for covering the deficit is the placement of state bonds,
    from which is expected to receive about 30bn drams, according to the
    minister. "All sources of financing the deficit are known," he said.
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