RA MINISTER OF FINANCE: ARMENIAN ECONONY IS NOW MANAGEABLE AND PREDICTABLE
NOYAN TAPAN
SEPTEMBER 28, 2009
YEREVAN
YEREVAN, SEPTEMBER 28, NOYAN TAPAN. "2009 was a difficult year, and
the whole economy has felt the impact of the crisis. The Armenian
government worked and continues to work in crisis conditions which
has considerably affected both the government policy and the budget’s
formation," RA Minister of Finance Tigran Davtian said during the
discussion of the 2010 draft state budget at the September 28 special
sitting of the Armenian government.
In his words, the 2010 budget was developed based on the economic
indices recorded this year and the forecasts for the remaining period
of 2009 and next year. The minister said the 18.5% fall of GDP recorded
now is expected to make about 15% in late 2009 as some stabilization
tendencies have been observed in the economy since August, and there is
a hope that they will continue and become more pronounced at the end
of 2009. It was also mentioned that by forecasts, GDP will amount to
3 trillion 116 billion drams in late 2009, which is less by about 15%
as compared to the same index of 2008. There has been a considerable
decline in taxes and state duties: they will amount to 510-530bn
drams in late 2009 instead of the envisaged 727bn drams.
T. Davtian said the budget expenditures will make 900-910bn drams in
2009 against the programmed amount of 945bn drams. The expenditures
will be mainly incurred at the expense of budget revenues and loans
received from international organizations (this year Armenia received
loans of 60 million USD from the World Bank, 155 million USD from the
International Monetary Fund, 80 million USD from the Asian Development
Bank, and 500 million USD from Russia).
The minister explained the suspension of some expenditures in the past
months of 2009 by the intention to make the budgetary processes more
manageable, saying that an attempt was made to balance somewhat the
decline in revenue collection. Expenses of little importance to the
economy have been suspended. The amount of important expenses such
as social expenditures, subsidies, expenses on national security and
public administration has remained unchanged.
According to the minister, the budget deficit is forecast to make up
to 7% in late 2009. Under the law passed by the RA National Assembly,
the upper limit of the deficit of Armenia’s budget has been raised
to 7.5%. The minister assured those present that everything is done
to keep the deficit at the envisaged level.