PROGRESS RECODRED IN ARMENIA’S STATE BUDGET IN 2006: CBA CHAIRMAN
ARKA News Agency
Sept 3 2007
Armenia
YEREVAN, September 3. /ARKA/. Progress was registered in the RA
State Budget in 2006 as compared to preceding years, and the tendency
continues in 2007, reported CBA Chairman Tigran Sargsian.
He stated that this year tax receipts grew as compared to 2006. In the
sphere of social expenditures which were panned on the level of 15.3%
a 21.1% progress was recorded.
Sargsian pointed out that despite progress, there are certain problems
which must be solved for raising the effectiveness of monetary
management and tax-budgetary policy. "It is necessary to secure the
growth of GDP-tax ratio. Though an overfulfilment was recorded in
the tax sphere, its growth rates still cede the GDP growth," he said.
Sargsian believes the only way-out of the situation a more detailed
analysis of the reasons for the divergence of the GDP-tax ratio.
The CBA Chairman pointed out that budget expenditures were greatly
economized in the reporting period, which was more apparent in the
first and second quarters of 2006. The rates of the cash turnover
decreased in the reporting period.
Sargsian pointed out that the processes affected the coordination of
monetary management and tax-budgetary policy. The issue will remain
topical both in 2007 and 2008, he said.
The Ra Parliament adopted on November 11, 2005 the law "On the State
Budget in 2006". Its revenues totaled AMD 497bln, the expenditures
being 556.8bln. The budget deficit totaled AMD 69.8bln.
According to the RA Statistic Service, the on-budget expenditures
totaled AMD 454977.6mln in 2006 – a 15.1% increase as compared to
the corresponding period in 2005.
The budget revenues and official transfers totaled AMD 439620.1mln
in 2006, the deficit being AMD 15357.5mln which makes 0.6% of the
GDP against 2.5% in 2005.