ARMENIAN OPPOSITION CRITICIZES NEXT YEAR BUDGET

ARKA
November 20, 2009
Yerevan

YEREVAN, November 20, /ARKA/. Armen Martirosian, a parliament member
from the opposition Zharangutyun (Heritage) party, lashed out today at
the draft 2010 budget saying it ignores a set of important questions.

He said his party would vote against it.

Speaking at a parliament briefing he said both spending and revenue
items of the budget as well as allocation of government funds must be
reconsidered. He added that the government had ignored the inflation
factor while drafting next year’s budget.

Ara Nranian from another opposition party-the Armenian Revolutionary
Federation (ARF)- said next year’s budget does not inspire optimism
because the living standards will be worsening due to the dwindling
money transfers from Russia and other countries from Armenian labor
migrants, stagnating salaries and social benefits.

As a result, he said, Armenian citizens will be spending less which
in turn would affect local producers.

According to Ara Nranian, the draft 2010 budget does not offer ways
how to improve the business environment and attract investments.

Heghine Bisharian from the Orinats Yerkir (Country of Law) coalition
partner, disagreed with both saying next year’s budget, despite the
limited resources, would ensure consistent implementation of all
projected programs.

Galust Sahakian, a deputy chairman of the governing Republican Party
and head of its parliamentary faction, singled out the social spending
item of the budget saying it will not be cut. He described it as
‘logical’ saying also revenues will start growing from H2, 2010.

According to the 2010 draft budget, the government plans to collect
676. 6 billion Drams of revenues, and spend 859.6 billion Drams. The
deficit is projected at 183 billion Drams and the GDP at 3.214 trillion
Drams. Armenia’s state debt is expected to hit $3.6 billion, economic
growth is projected at 1.2%. The deficit to GDP ration is projected
at 6%, down from 7.5% for 2009.