ARMENIAN GOVERNMENT ADOPTS DRAFT BUDGET 2009

ARKA
Sep 25, 2008

YEREVAN, September 25. /ARKA/. Armenia’s Government approved today
the draft budget 2009.

Armenia’s Minister of Finance Tigran Davtyan said at a government
briefing budget receipts will total 927.7bln drams. Expenditures are
expected to reach 967.1bln drams. The budget deficit will total 40bln
drams (less than 1% of GDP).

The share of community budgets in the state budget will be 50.1bln
drams.

Direct receipts will amount to 905bln drams, the minister reported.

He said "it would be hard to restrain budget deficit, yet it is a
feasible task," Davtyan was quoted saying.

The minister informed that domestic sources will cover 30bln of
total deficit.

Tax proceeds will reach a record 726bln drams next year. The government
plans to reach tax proceeds of 0.4% of GDP.

To prove his words, Davtyan said tax proceeds were 17% of GDP this
year, with a view to reach 17.4% next year.

"Next year compulsory payments, official grants and other incomes
are expected to total 128bln drams, 36bln drams, 14.8bln drams
respectively," the minister added.

The share of budget receipts in GDP will be 27% in 2009. The government
expects to reach expenditures of 22.7% of GDP and a deficit of 0.96%
of GDP.

Education and healthcare will have the lion’s share in expenditures
(127bln drams and 66bln drams respectively). Defense expenditures wil
l total 149.6bln drams. The government will allocate 24.3bln drams
for social benefits and pensions. Armenia’s GDP is expected to reach
4.169bln next year, compared to current 3.6bln.

GDP will rise 9.2%. Armenia expects 4% (±1.5%) inflation. DP per
capita will reach $4,300 next year.

Budget receipts and expenditures are expected to total 746bln drams
and 822bln drams respectively by end-2008.

–Boundary_(ID_yDa19Yzb8xve57CXiwURZQ)- –