ARMENIAN FINANCE MINISTER SAYS AT PRESENT THE ARMENIAN ECONOMY IS MANAGEABLE AND PREDICTABLE
ARMENPRESS
SEPTEMBER 28, 2009
YEREVAN
YEREVAN, SEPTEMBER 28, ARMENPRESS: 2009 was a difficult year and
the economy totally suffered the impact of the crisis. The Armenian
government has worked and continues to work in the crisis conditions
which had a notable impact on the policy of the government as well as
on the budget drafting. During today’s extraordinary session of the
Government on the discussion of the draft state budget 2010 Armenian
Finance Minister Tigran Davtian informed that the Budget 2010 has been
formed based on the already recorded economic indexes and predictions
for the end of the year and the next year.
According to T. Davtian the registered 18.5% GDP fall is intended to be
reached to 15% by the end of the year. The Minister said that certain
tendencies of stabilization of the economy were noted yet in August,
which are intended to be continued and made more vivid at the end of
the year.
According to the predictions at the end of 2009 the GDP will reach
nearly 3 trillion 116 billion drams for nearly 15% less over the same
index in 2008. The volumes of taxes have notably decreased; at the
end of the year they will reach 510-530 billon drams instead of the
intended 727 billion. Reduction of nearly 200 billion taxes has its
negative impact. To cover the gap between the planned expenditures
and budget revenues the Government undertakes steps to boost the
economy. The Minister assured that the intended expenditures were on
the whole implemented.
The budget expenditures intended for the running year will reach
900-910 billion drams instead of the planned 945 billion. They will
mainly be implemented through the budget revenues and credit means
involved from the international institutions.
The Minister explains suspension of certain expenditures during
this year with the intention to make the budget procedures more
controllable, with which an intention is also made to balance the
reduction of volumes of taxation. Those expenditur t have a significant
impact on the economy.
T. Davtian said that according to the predictions the budget deficit at
the end of this year will reach 7%. He reminded that the legislative
body has passed a law increasing the upper bar of the budget deficit
to 7.5%. The Minister assured that everything is done to preserve
the deficit on the intended level.
"2009 is a rather tensed year; we have serious tasks to draw the
economy out of this situation. In this condition the Government
carries an expansion policy, which was on the whole successful. At
present the economy of Armenia is controllable and predictable. The
crisis has not ended yet but the tendencies of stabilization of the
economic fall are obvious," the Minister said.