PARLIAMENT BEGINS DEBATES ON 2008 BUDGET
ARMENPRESS
Nov 13, 2007
YEREVAN, NOVEMBER 13, ARMENPRESS: Armenia’s parliament began today
debates on the draft 2008 budget after prime minister Serzh Sarkisian’s
brief introduction, who described it as ‘very ambitious."
According to him, its implementation will launch the second-generation
reforms, which supposes a substantial increase in government revenues
collection and expenditures.
The draft budget for next year calls for a more than 40 percent surge
in state expenditures and revenues. Under the bill the government
spending in 2008 will total 820.8 billion drams ($2.45 billion),
compared with 584 billion drams projected for this year. State revenues
are projected to jump by 44 percent to 744.7 billion drams.
Social, education and healthcare sectors will be key beneficiaries of
increased public spending. In particular, the education sector will
receive 103.7 billion in funding, up by almost 20 percent from 2007.
Spending on healthcare is also to rise by 24 percent to 54.6 billion
drams. Social sector spending will grow 46 percent.
Earlier Armenian defense minister Mikael Harutunian said military
budget for 2008 will increase 20 percent to 124.366 billion drams
(about $380 million).
Old age and retirement pensions will grow 60 percent. The government
will also support higher birth rates, by setting a 300,000 Drams
one-time allowance to every third child. The sum will grow 50 percent
for every next child in the family.
Serzh Sarkisian said the average salary of a school teacher will grow
from current 74,000 Drams to nearly 90,000.
Under the bill, real GDP growth is projected at 10 percent, deflation
volume at 4 percent and annual inflation rate at 4 percent with a
1.5 percent margin.
The exchange rate of one US Dollar is calculated at 336.5 Armenian
Drams, but according to finance and economy minister, the figures
are subject to change.
Imports are expected to grow 13.7 percent and exports 20 percent. Tax
and customs revenues are planned to constitute 17 percent of the GDP.