Government Of Armenia Revises Draft Budget 2010

GOVERNMENT OF ARMENIA REVISES DRAFT BUDGET 2010

ArmInfo
2009-12-03 14:30:00

ArmInfo. The government of Armenia revised the draft budget 2010
towards increase and submitted its final version to the parliament
for approval. The draft budget changed was introduced by Finance
Minister of Armenia Tigran Davtyan and approved at the government
session on Thursday.

According to the minister, the budget was formed mainly in July-August,
and the macro- economic situation in the country has lately improved –
Armenia could receive additional foreign financial resources. Moreover,
the budget grew in view of change of the urrency rate. As T. Davtyan
said, the budget deficit will make up 193 bln drams or 6% of
GDP, against the earlier planned 183 bln drams or 5,6% of GDP. The
government will return to the budget deficit of the pre-crisis period –
about 3% during the next several, he said.

The budget revenue 2010 will make up 742 bln drams against the earlier
planned 676 bln drams, as well as the tax revenue will make up 570
bln drams or 17,7% of GDP against the previous 16,6%. The minister
also said it is expected to receive additional expenditures to 25
bln drams from Millennium Challenges American Corporation, to be
allocated for irrigation and water supply, moreover, they have been
included in both the budget revenues and expenditures. It is scheduled
to receive additional 19 bln drams of tax revenue due to stiffening
of the tax administration.

Budget expenditures 2010 will make up 935 bln drams against the
previous 859 bln drams. The big expense items include return
of extra-payments on VAT to exporters to the sum of 18 bln drams,
return of the Soviet deposits to the population to 1,7 bln drams. It is
scheduled to direct additional 5 bln drams for construction of schools,
etc. According to the minister, the key macroeconomic indicators
in the draft budget did not change. Forecast on GDP growth by 1,2%
to 3,214 tln drams has been mainly laid in the country’s financial
document. Deflator index will make up 2% of GDP, and the average
annual inflation – 4% -1,5%.

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