ARMENIAN GOVERNMENT APPROVES FINAL VERSION OF NEXT YEAR’S BUDGET

ARKA
Dec 3, 2009

YEREVAN, December 3, /ARKA/. The Armenian government has approved
today the final version of next year’s budget and will submit it to
the parliament’s consideration and approval, finance minister Tigran
Davtian said.

He said the revised version incorporates a set of proposals and
suggestions made by lawmakers during parliamentary hearings on
the budget.

According to him, the initial version that was being drafted in summer,
underwent a substantial revision later as the macroeconomic indices
were changing.

The 2010 budget calls for 742 billion Drams in revenues, by 65 billion
Drams up from the initially projected target. Some 570 billion Drams
are projected to be collected in taxes, which will allow to raise
the taxes to GDP ratio to 17.7% instead of earlier planned 16.6%.

The budget calls for 935 billion Drams in expenditures, which rose
by 75 billion Drams from the initially planned 859 billion Drams. The
deficit is projected at 193 billion Drams

Finance minister Tigran Davtian admitted that the budget gap is
relatively high, saying t the government will be working to reduce
it gradually to before-the-crisis level.

He said the budget does not reflect a privileged loan and a grant
pledged by the European Union. He said if they are calculated next
year budget’s spending would even exceed the 2009 figure.

According to the minister, next year’s budget has earmarked 1.7
billion drams to be paid as compensation for depreciated Soviet-era
bank deposits.

He said the government expects the economy to grow by 1.2% in 2010.

($1 – 385.6 Drams).