SHORTCOMINGS IN BUDGET EXECUTION HAD POSITIVE EFFECT ON INFLATION, DEPUTY CHAIRMAN OF CBA SAYS
Noyan Tapan
Ma y 12, 2008
YEREVAN, MAY 12, NOYAN TAPAN. There are some problems with the
execution of Armenia’s budget in recent years and these problems
have had a negative impact on efficiency of the monetary and credit
policy, the deputy chairman of the Central Bank of Armenia (CBA)
Arthur Javadian said at the May 12 joint sitting of the National
Assembly standing committees.
In particular, according to him, tax collection exceeded the
programmed level and expenditures were saved in the first quarter of
2007. Besides, a large share of expenditures in cash was retained
in the structure of budgetary expenditures in 2007. "Thus, on the
one hand, the large share of cash in budgetary expenditures, on
the other hand, some proportions in the nonspecified state budget
negatively affected the efficiency of management of banking liquidity
and the process of improving the activity of the financial market,"
A. Javadian said. At the same time, in his words, under conditions of
accelerating inflation in Armenia and the appreciation of the Armenian
dram in 2007, the collection of more revenues than was envisaged and
the underfulfilment of the expenditure programs did not create any
additional pressure on inflation in the consumer market and in fact,
had a positive effect on macroeconomic stability.