Share Of Budget Spending In 2009 GDP Likely To Grow To 28%: Deputy Finance Minister

/ARKA/
September 18, 2009
YEREVAN

YEREVAN, September 18, /ARKA/. The share of budget spending in 2009
GDP is likely to grow to about 28%, a deputy finance minister Vardan
Aramian said today, comparing the forecasted figure with 20-22%
share in 2004-2008 GDPs.

Speaking at a news conference he said the economic downturn is set
to push the spending up by 11-12%. Armenian ministry of finances had
predicted earlier a 10-15% economic fall for 2009. The minister said
spending execution means actually to spur up the demand.

The minister singled out the establishment of the National Mortgage
Company as a new instrument to stimulate the demand. The government
has provided the Company with 12 billion Drams to be distributed as
mortgage loans through commercial banks.

The National Mortgage Company was registered and licensed by the
Central Bank on June 16, 2009. The minister said the government is
taking measures not only to spur up the demand but the supply as well.

"If the demand begins to drop, it brings about new problems, such as
unemployment and growing imports,’ he said.

From: Emil Lazarian | Ararat NewsPress