GOVERNMENT APPROVES 2010 DRAFT STATE BUDGET OF ARMENIA
NOYAN TAPAN
SEPTEMBER 28, 2009
YEREVAN
YEREVAN, SEPTEMBER 28, NOYAN TAPAN. At the September 28 special
sitting of the Armenian government, the 2010 draft state budget of
the Republic of Armenia was discussed and approved.
Minister of Finance Tigran Davtian said that based on opinions of
Armenian and foreign experts, a 1.2-1.3% growth of GDP is forecast
for 2010, and in this case GDP will amount to 3 trillion 214 billion
drams. The index deflator – the inflation of goods made in Armenia
is forecast at 2%, the budget revenues are forecast to make 676.7bn
drams, including taxes and state duties of 533.5bn drams and social
payments of 105.2bn drams. The overall budget is forecast to make
701.7bn drams, with expenditures amounting to 884.7bn drams and the
deficit making 183bn drams. The deficit/GDP ratio will make 5.69%. The
budgets of communities will amount to 82.5bn drams.
According to the minister, the 2010 budget expenditures will be less
by 85bn drams than this year, although 2009 expenditures have been
also reduced.
Despite this fact, like in 2009, the social, scientific expenditures,
as well as expenses on national security and other urgent purposes
in 2010 will remain at the same level. This year most of the budget
expenditures were incurred at the expense of foreign resources, whereas
in 2010 it will be impossible to spend the same amounts: first of all,
it is necessary to limit the amount of resources attracted so that
the budget deficit will be within the manageable limits. Besides,
the sums (quite large) for servicing the debts received so far will
be added in the 2010 budget.
Among expenditures to be reduced next year are capital and public
administration expenses. No equipment and vehicles will be purchased
for the state machinery, while the expenses on business trips and
official state receptions will halve. A number of expenditures:
salaries of civil servants, community subsidies, and sums for debt
servicing will increase. By the 2010 draft budget, the budget decicit
is envisaged to make 183bn drams and has to be covered from foreign
and domestic sources.
T. Davtian said that in 2010 the government will try to attract
budgetary loans of 7.5bn drams from the World Bank and loans of 150
million USD from the IMF: negotiations are being conducted with the WB,
and an agreement has already been signed with the IMF. One domestic
source for covering the deficit is the placement of state bonds,
from which is expected to receive about 30bn drams, according to the
minister. "All sources of financing the deficit are known," he said.