ARMENIAN GOVERNMENT ANNOUNCES TRANSITION FROM EXPANSIONARY POLICY TO CURBING AND SPURRING MACROECONOMICS
May 19, 2010
YEREVAN, May 19. /ARKA/. Armenian Finance Minister Tigran Davtyan,
speaking Wednesday in Armenian National Assembly, said the government
announced transition from expansionary policy to the policy of curbing
and spurring macroeconomics.
"Armenian government and the central bank started taking all the steps
aimed at reducing the budget deficit," he said. "The Central Bank of
Armenia has raised the refinancing rate and has taken some drastic
monetary measures. We are moving from the expansionary policy pursued
amid the crisis to the policy of curbing and spurring macroeconomics."
On May 11, the Central Bank of Armenia raised the refinancing rate
by 0.25 percentage points to 7.25%.
Davtyan said that reduction of the budget deficit is among top-priority
focuses of Armenia’s 2010 economic policy, since risk of greater
budget deficit looms large as optimistic sentiments run high in
The minister said that the budget deficit is planned at 6% or AMD
193 billion in the 2010 state budget.
He said that the deficit will be shrinking gradually in the future.
Davtyan said that Armenia also faces the problem of raising pensions,
state benefits and salaries.
He thinks intensification of tax inflow in the state budget and growth
of taxes/GDP ratio would help the government solve this problem.
He said that the government is working in this direction in cooperation
with IMF experts. ($1 = AMD 384.48).