CBA CHAIRMAN CONSIDERS 2010 DRAFT STATE BUDGET REALISTIC

NOYAN TAPAN
NOVEMBER 20, 2009
YEREVAN

YEREVAN, NOVEMBER 20, NOYAN TAPAN. "I consider the 2010 draft state
budget of Armenia as realistic. I think this is the best document that
the government could submit under conditions of the gloal financial and
economic crisis," Chairman of the Central Bank of Armenia (CBA) Arthur
Javadian said at the November 19 sitting of the National Assembly,
when presenting the CBA’s conclusion about the 2010 draft state budget.

The official conclusion of CBA notes that the draft presents in
detail the vision of improving the investment environment and the
tax and customs administration and assisting the development of
infrastructures, and it also indicates the necessity to continue
the anticrisis measures. It was mentioned that in case of efficient
coordination of the monetary and fiscal policies, it will become
possible to ensure macroeconomic stability and keep inflation within
the target interval of 4+-1.5%.

A. Javadian said that in the opinion of international experts, the
share of the shadow sector in the Armenian economy makes up 30-40%,
whereas in the CBA’s opinion, its share is 25-30%. In his words, the
draft budget "fully reflects the fight against the shadow sector". It
was stated that the government plans to collect 13 billion drams
through administrative measures, but there are also other measures
to be used by tax bodies and other state departments to fight the
shadow sector. "I believe that the actions the government is currently
taking in this direction are satisfactory," the CBA chairman said,
adding that "it is not an easy job".