Armenia set to discuss 2011 national budget

PanARMENIAN.Net - The standing committees of the Armenian National Assembly will debate the draft budget from October 18 to 23.

Armenian Finance Minister Tigran Davtyan said that the country will retain sustainable economic growth in 2011. Presenting the 2011 national budget, the Minister said the budget will be socially-oriented.

The national budget revenues will total AMD 850 billion; expenditures will amount to AMD 1 trillion while the budgetary deficit is expected to make AMD 148,6 billion.

The budget is based on macroeconomic forecasts, under which the real economic growth will total 4.6% next year in Armenia, while the nominal index will be higher.

The nominal volume of Armenia’s GDP will total AMD 3763bln in 2011 that is considerably higher compared to the 2008 index. “In 2011 we will exceed the pre-crisis period of economic growth,” Davtyan said, adding that the country’s economy has started stabilizing and rehabilitating.

According to him, 3-4% growth will be recorded by the end of the year, exceeding the planned index of 1.2%.

“The final index would have been much higher, if it were not for a sharp decrease in agriculture basically conditioned by natural and climatic conditions. The government will manage to secure the level envisaged by the 2010 budget (4±1,5%) by the yearend,” Davtyan said.

The budgetary deficit is expected to be below 5% in 2010, with further decrease to 3.9% in 2011.

International Monetary Fund has reviewed the terms of aid provided to Armenia, extending maturity dates and decreasing interest rates. Negotiations on loans refinancing are held also with other organizations.

Moreover, the state debt servicing is reflected in the mid-term expenditure program of the Armenian government and does not cause any concerns.

2011 draft state budget also envisages salary increase for scientists and cultural workers.

Besides, the amount of assistance to Nagorno Karabakh will be increased.