Interfax, Russia
July 31 2009

Armenian budget deficit totals 4.2% of GDP in H1

YEREVAN July 31

Armenia’s budget deficit totaled roughly 47 billion dram in the first
half of 2009, or 4.2% of GDP, the National Statistics Service said.

Budget revenue amounted to 300.4 billion dram in the half, or 26.8% of
GDP, while expenditures totaled 347.4 billion dram, or 31% of GDP.

Revenue declined 12.9% in the half compared to the same period of
2008. Tax revenue to the budget fell 18.2% to 233.1 billion dram, or
20.8% of GDP. VAT declined 26% to 104.7 billion dram, profit taxes –
2.7% to 45.2 billion dram and excise taxes – 8.6% to 19 billion dram.

Revenue from income taxes rose 12.6% to 26.8 billion dram.

Expenditures increased 6% in the half. Spending on the social sphere
amounted to 10.5% of GDP, defense – 4.6% and education – 4.4%.

Armenia approved budget revenue of 905.4 billion dram in 2009,
including 727.5 billion dram from tax revenue and duties. Expenditures
are planned at 945.4 billion dram, while the budget deficit is planned
at 40 billion dram, or 0.96% of GDP.

The official exchange rate on July 31 was 369.98 dram/$1.