PanARMENIAN.Net

Reserve fund to cover state budget deficit in 2009
12.03.2009 17:33 GMT+04:00

/PanARMENIAN.Net/ `In the end of 2009 we’ll face some difficulties in
covering the budget, but the crediting of social programs won’t be
cancelled,’ the Chairman of Parliamentary Commission for Finance,
Crediting, Budget and Economy, Member of RA Republican Party Gagik
Minasyan told a news conference on Mar. 12.

According to Minasyan, the Armenian Government will undertake all
necessary steps to overcome the financial crisis, as well as promote
creation of new job opportunities in more perspective spheres. He
specified that realization of social expenditures can be postponed
till the last quarter of 2009, when the budget is filled with new
proceeds.

As for state revenues, the reserve fund, now totaling AMD 77billion,
will allow decreasing the budget deficit to 3%. The Parliamentary
Commission Chairman added that 2007 reserve fund allowed to fully
cover the expenditures for 2008. `Much was spent on exchange rate
control in the first months of 2009, yet the expenditures were
necessary for timely introduction of the floating exchange rate
policy.’ According to Gagik Minasyan’s forecast, by the end of the
year state expenditures will be compensated by the revenue secured
from shadow economy control.