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Armenia's 2015 state budget socially-oriented budget in different
respects - IMF Resident Representative
14:36 * 04.01.15
http://www.tert.am/en/news/2015/01/04/sanches/1550819
Teresa Daban Sanchez, IMF Resident Representative in Armenia, believes
that Armenia's 2015 state budget is a socially-oriented budget in
different respects.
In an interview with Tert.am, she said that 10% of the budget is
exclusively social.
The share of the budget deficit in the GDP is a little higher in
Armenia's 2015 budget - 0.3%, which will mainly be directed to
increase capital expenditure to give impetus to the creation of jobs,
increase supplies, which, in turn, will result in higher growth,
renovation of schools, etc. The IMF believes Armenia is capable of
ensuring this small growth because the financial situation is
favorable.
Armenia's 2015 state budget is socially-oriented in different
respects. First, the deficit is aimed at ensuring higher economic
growth, and positive results will be felt. The IMF believes that some
slowdown in tax revenues growth will prove beneficial for the business
community. The budget envisages an increase in capital expenditure,
which will have its impact on other economic sectors. The budget also
envisages a 15% increase in pensions. In many other respects, the 2015
budget promotes economic growth.
With respect to the Armenian government's struggle against black
economy and policy to promote small and medium business development,
Ms Teresa Daban Sanchez said that reducing shadow economy and
improving the business environment is one of the government's
priorities. The IMF is supporting the government not only with advice,
but also by rendering technical assistance. If taxation were
business-friendly, businessmen would not avoid taxation and respect
the tax law.
As regards Armenia's accession to the Eurasian Economic Union (EEU)
and resulting influence of the Russian ruble on the country's economy,
Ms Teresa Daban Sanchez said that Armenia is a small and open economy,
which is using Euros, US dollars and Russian rubles. Markets are
efficient, with the USD dominating because of international
agreements. Possible influence is difficult to forecast. It depends on
the banking system the business community prefers: some businessmen
may prefer the Russian ruble in dealing with their Russian partners,
while others may prefer the USD. If transparency and market efficiency
is ensured, people will see the real value of each currency.
Armenia has more liberal economic laws that the other EEU
member-states. So what will be the result of Armenia's integration
into the EEU?
In this respect, Ms Ms Teresa Daban Sanchez said that the EEU remains
at the Customs Union level. Three components are of importance for
Armenia. First, Armenia's customs duties remain unchanged. Second, no
customs clearance procedures. Third, Armenia will have a share in
regulated customs duties.
However, seeing the EU member-states' experience, the member-states
will continue their key policy. The member-states can implement
independent policies. For example, Russia is applying sanctions
against EU member-states without the other states' involvement. In
determining the liberalization level, the IMF can consider
international surveys, including Doing Business assessments, which
show Armenia at a higher level in certain respects. Armenia has much
to do to improve the business environment.
respects - IMF Resident Representative
14:36 * 04.01.15
http://www.tert.am/en/news/2015/01/04/sanches/1550819
Teresa Daban Sanchez, IMF Resident Representative in Armenia, believes
that Armenia's 2015 state budget is a socially-oriented budget in
different respects.
In an interview with Tert.am, she said that 10% of the budget is
exclusively social.
The share of the budget deficit in the GDP is a little higher in
Armenia's 2015 budget - 0.3%, which will mainly be directed to
increase capital expenditure to give impetus to the creation of jobs,
increase supplies, which, in turn, will result in higher growth,
renovation of schools, etc. The IMF believes Armenia is capable of
ensuring this small growth because the financial situation is
favorable.
Armenia's 2015 state budget is socially-oriented in different
respects. First, the deficit is aimed at ensuring higher economic
growth, and positive results will be felt. The IMF believes that some
slowdown in tax revenues growth will prove beneficial for the business
community. The budget envisages an increase in capital expenditure,
which will have its impact on other economic sectors. The budget also
envisages a 15% increase in pensions. In many other respects, the 2015
budget promotes economic growth.
With respect to the Armenian government's struggle against black
economy and policy to promote small and medium business development,
Ms Teresa Daban Sanchez said that reducing shadow economy and
improving the business environment is one of the government's
priorities. The IMF is supporting the government not only with advice,
but also by rendering technical assistance. If taxation were
business-friendly, businessmen would not avoid taxation and respect
the tax law.
As regards Armenia's accession to the Eurasian Economic Union (EEU)
and resulting influence of the Russian ruble on the country's economy,
Ms Teresa Daban Sanchez said that Armenia is a small and open economy,
which is using Euros, US dollars and Russian rubles. Markets are
efficient, with the USD dominating because of international
agreements. Possible influence is difficult to forecast. It depends on
the banking system the business community prefers: some businessmen
may prefer the Russian ruble in dealing with their Russian partners,
while others may prefer the USD. If transparency and market efficiency
is ensured, people will see the real value of each currency.
Armenia has more liberal economic laws that the other EEU
member-states. So what will be the result of Armenia's integration
into the EEU?
In this respect, Ms Ms Teresa Daban Sanchez said that the EEU remains
at the Customs Union level. Three components are of importance for
Armenia. First, Armenia's customs duties remain unchanged. Second, no
customs clearance procedures. Third, Armenia will have a share in
regulated customs duties.
However, seeing the EU member-states' experience, the member-states
will continue their key policy. The member-states can implement
independent policies. For example, Russia is applying sanctions
against EU member-states without the other states' involvement. In
determining the liberalization level, the IMF can consider
international surveys, including Doing Business assessments, which
show Armenia at a higher level in certain respects. Armenia has much
to do to improve the business environment.