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EX-PREMIER: ARMENIA'S DRAFT STATE BUDGET 2013 DOES NOT MEET THE CHALLENGES THAT ARMENIA'S ECONOMY MAY FACE
arminfo
Thursday, November 15, 15:54
Armenia's draft state budget 2013 does not meet the challenges that
Armenia's economy may face, Hrant Bagratyan, member of the opposition
Armenian National Congress Faction, ex-prime minister of Armenia,
said in Parliament on Thursday.
He said that the wealthy people do not replenish the budget and do
not pay taxes. This reduces the consumption level in the country, and
businessmen get interested in taking their capital abroad. Bagratyan
pointed out that according to the Central Bank's data, the annual
outflow of capital from Armenia totals 1 bln USD. One more problem of
the country's economy is the oligarchic structure, which also hinders
development of economy, he said.
He meant that the economy is controlled by those who have a decisive
impact on the budget drafting. They adopt a document, which is
beneficial to them. Bagratyan also stressed that the development of the
banking system over the past ten years has resulted in the fact that
the banks receive not only an ordinary profit, but also a rent from
the real sector of economy, which abruptly reduces the internal stimuli
for the economic development. "All these factors cause migration that
has reached unprecedented sizes", the ex- premier stressed and added
that the ANC Faction submitted about 40 specific offers to introduce
amendments in the draft budget, but has received no response.
To note, the Government suggests approving the revenues of the
consolidated state budget of 2013 at 1 trillion 31 billion AMD,
spending - at 1 trillion 151 billion AMD. The deficit is set at about
120 bln AMD, or 2.6% of GDP. The 12-month inflation is forecasted
with the range 4+1.5%, and GDP growth - 6.2%. ($1 - 406.57 AMD). The
revenues of the budget will exceed the indices of 2012 by 13.2%. Taxes
and duties will constitute a big part of the state budget revenues -
96.25%. Official grants and other revenues will be 1.6% and 2.16%
respectively. The proceeds from taxes and state duties will total
992.9 bln AMD, which is by 118 bln AMD more than in 2012.
The share of taxes and duties in Armenia's GDP will be 21.88%, which is
by 0.6- 0.8% more that in 2012. Official grants from foreign states
and international organizations will total 16.4 bln AMD, of which
82% - from the European Union. In additions grants are expected from
the Government of Germany, international financial institutions and
a number of states. Other revenues will total 22.3 bln AMD. It is
envisaged to receive these funds from the Central Bank. Spending of
the budget will be by 16.9% or by 190 bln AMD higher than in 2012.
83.1% of these funds will be operating costs and 16.9% or 190 bln AMD -
capital expenditure.
arminfo
Thursday, November 15, 15:54
Armenia's draft state budget 2013 does not meet the challenges that
Armenia's economy may face, Hrant Bagratyan, member of the opposition
Armenian National Congress Faction, ex-prime minister of Armenia,
said in Parliament on Thursday.
He said that the wealthy people do not replenish the budget and do
not pay taxes. This reduces the consumption level in the country, and
businessmen get interested in taking their capital abroad. Bagratyan
pointed out that according to the Central Bank's data, the annual
outflow of capital from Armenia totals 1 bln USD. One more problem of
the country's economy is the oligarchic structure, which also hinders
development of economy, he said.
He meant that the economy is controlled by those who have a decisive
impact on the budget drafting. They adopt a document, which is
beneficial to them. Bagratyan also stressed that the development of the
banking system over the past ten years has resulted in the fact that
the banks receive not only an ordinary profit, but also a rent from
the real sector of economy, which abruptly reduces the internal stimuli
for the economic development. "All these factors cause migration that
has reached unprecedented sizes", the ex- premier stressed and added
that the ANC Faction submitted about 40 specific offers to introduce
amendments in the draft budget, but has received no response.
To note, the Government suggests approving the revenues of the
consolidated state budget of 2013 at 1 trillion 31 billion AMD,
spending - at 1 trillion 151 billion AMD. The deficit is set at about
120 bln AMD, or 2.6% of GDP. The 12-month inflation is forecasted
with the range 4+1.5%, and GDP growth - 6.2%. ($1 - 406.57 AMD). The
revenues of the budget will exceed the indices of 2012 by 13.2%. Taxes
and duties will constitute a big part of the state budget revenues -
96.25%. Official grants and other revenues will be 1.6% and 2.16%
respectively. The proceeds from taxes and state duties will total
992.9 bln AMD, which is by 118 bln AMD more than in 2012.
The share of taxes and duties in Armenia's GDP will be 21.88%, which is
by 0.6- 0.8% more that in 2012. Official grants from foreign states
and international organizations will total 16.4 bln AMD, of which
82% - from the European Union. In additions grants are expected from
the Government of Germany, international financial institutions and
a number of states. Other revenues will total 22.3 bln AMD. It is
envisaged to receive these funds from the Central Bank. Spending of
the budget will be by 16.9% or by 190 bln AMD higher than in 2012.
83.1% of these funds will be operating costs and 16.9% or 190 bln AMD -
capital expenditure.