TIGRAN DAVTIAN: IN 2010 ARMENIA WILL START PROGRAMS ENVISAGED FOR IMPLEMENTATION BEFORE CRISIS

Noyan Tapan
Jan 25, 2010

YEREVAN, JANUARY 25, NOYAN TAPAN. 2009 was a difficult year, but we
managed to carry out the tasks given to us and to withstand the global
financial and economic crisis, Armenian Minister of Finance Tigran
Davtian told a press conference held at the government on January 23.

In his words, under conditions of the crisis it was important to
ensure macroeconomic stability in the country, and the government
succeeded in that.

In particular, all budget processes were ensured, and all social
obligations programmed before the crisis were fulfilled. The minister
said that in conditions of a decline in revenues last year, the
government conducted a policy of expansion: more state resources were
attracted into the economy, thanks to which Armenia overcame all the
existing difficulties. In addition, last year reforms were carried
out in prize game, tax and some other sectors to improve financial
discipline there.

Speaking about work to be done in 2010, T. Davtian said that Armenia
will start solving the problems to be dealt with before the crisis.

Particularly, this year they will return to measures aimed at ensuring
economic growth, it is also planned to return to medium-term budgeting
which was stopped due to the crisis. Strict control of off-budget
expenses will be established this year. The accounts of the Program
Implementation Offices will be transferred from commercial banks to
the RA treasury system. "The Program Implementation Offices implement
programs at the expense of loans which are budgetary resources, and
they are not under efficient control in case of opening accounts in
commercial banks. It is necessary to transfer these accounts to the
treasury system," the minister stated.

T. Davtian considered a 7.4% deficit as possible this year, adding
that it may decline in case of implementation of necessary work.