RA NA DISCUSSES FY 2010 DRAFT BUDGET

news.am
Nov 18 2009
Armenia

RA Parliament commenced debates on FY 2010 draft budget. Presenting
the document, RA Prime Minister Tigran Sargsyan stated that the
Government focuses on pension fund and insurance system reforms,
that will enable to increase diversification of Armenian economy.

According to him, state management will also undergo reforms and nine
tools will be used to modify the healthcare field. Sargsyan devoted
special attention to the betterment of financial techniques, adding
that reforms in social and educational fields are underway. As Armenia
will get financial aid from the "Millennium Challenges" fund in 2010,
the volume of budget expenditures will equal to those of 2009.

He deems GDP might register 1.2% economic growth in 2010. "We also
intend to retain social funding at the level of FY 2009," the PM added.

The draft budget provided for 533bnm AMD income instead of the
estimated 500bn AMD. Under favorable economic conditions the indexes
will overrun, otherwise, the expenditures items will be met through
reserve fund.

Compared to 2009, the funding of local government institutions will
increase for 17% making 32.5bn AMD in 2010. A separate article is
foreseen for NKR to receive 31bn AMD earmarked for the people’s
security. According to the PM, Armenian government will keep on
supporting small and medium enterprises. Domestic export will be
promoted, whereas tax and customs reforms to go on.

RA Finance Minister Tigran Davtyan said that in 2010 Armenia will
register economical stability with the 1.2% growth, and deflator of
2%. According to him the budget deficit will hit 5-7% of GDP which
is tangible compared to 2009. Davtyan said that the exchange rate
will be set at 376AMD against 1 USD.