GOVERNMENT OF ARMENIA APPROVES DRAFT BUDGET 2010 WITH BUDGET DEFICIT OF 5,69% OF GDP

ArmInfo
2009-09-28 12:04:00

ArmInfo. Government of Armenia approved the draft budget 2010 with
deficit of 183 bln drams or 5,69% of GDP at its Monday extra session.

According to Finance Minister of Armenia Tigran Davtyan, who
introduced the draft budget, the it is planned to cover the budget
deficit through the foreign sources of funding at the rate of 92,4
bln drams and internal sources – 90,5 bln drams. The minister added
that an agreement was reached with the International Monetary Fund
to attract foreign funding to cover the budget deficit. IMF extended
a credit at $150 mln for these purposes, and negotiations are also
held with the World Bank for attraction of a loan at 7,5 mln drams.

The fiscal revenue of 2010 have been scheduled at the level of
676,658 bln drams, including tax revenues – 533 bln drams. The budget
expenditures have been scheduled at the level of 859,666 bln drams. A
forecast on GDP growth by 1,2% has been laid in the budget – to 3,214
trn drams. Deflator index will make up 2% of GDP, and the average
annual inflation – 4% +1,5%.

According to the minister, the budget of 2010 will be less by 85 bln
drams than the current one because of the negative crisis phenomena
in the country’s economy. T. Davtyan assured that the government
tries to save on the capital expenditure and the expenditure for the
government machine administration. The officials will have to refuse
of acquiring new company cars in 2010, reduce their business trips
and the expenses for official receipts, the minister said. Moreover,
the expenses for service of the external government debt will grow,
he said. The minister added that the next year, the government will
have to refrain from attraction of foreign credits to cover the budget
deficit and solve the social problems.

Along with it, the government will try to maintain the social expenses
at the same level, in particular, salaries to the government employees,
pensions and allowances. ‘In general, the year 2010 will expectedly
be quite strained, and we shall work in the cost cutout regime’,
T. Davtyan said. The draft budget 2010 will be submitted to the
Parliament on October 2.

From: Emil Lazarian | Ararat NewsPress