2011 national budget will ensure social stability

PanARMENIAN.Net - “The risks are calculated and will be in the focus of the government,” Prime Minister Tigran Sargsyan said when commenting on the opposition’s concerns.

The vote was preceded by hot debates.

According to ARF Dashnaktsutyun parliamentary group member Artsvik Minasyan, the draft budget “is not initiative.” “The draft budget does not encourage economic competition, development of small and medium business. Under conditions of the financial crisis, it is necessary to develop a new social and economic strategy,” Minasyan said, adding that the ARF Dashnaktsutyun will vote against it.

Member of Prosperous Armenia parliamentary group Vardan Bostanjyan noted for his part that the group hails the increase in defense expenses in the final version of the draft budget.

Chairman of the RA parliamentary standing committee for financial and budgetary affairs Gagik Minasyan said that the committee will vote for the budget adoption.

Orinats Yerkir parliamentary group also supported the draft state budget.

For his part, the RA NA Speaker urged members of the parliament to vote for the draft state budget adoption, saying that it stems from Armenia’s national interests.

Presenting the final draft budget, Armenian Minister of Finance Tigran Davtyan said that 616 suggestions were received from deputies and parliamentary groups, out of which 215 suggestions have been approved by the government. “AMD 2.4bln growth is recorded in budgetary expenses and revenues. The defense expenses increased by AMD 5-6bln, what was suggested by the Armenian President and Republican Party of Armenia,” he said.

Armenian Prime Minister Tigran Sargsyan said that the Armenian government’s social and economic policy will be basically aimed at returning from anti-crisis policy to sustainable development of economy.

“The government’s economic policy in 2011 will be basically aimed at diversification of economy and expanding export orientation, deepening of social orientation of the pursued economic policy, development of infrastructures, considerable improvement of business and investment environment, revelation and usage of additional stimuli securing economic growth,” the Prime Minister said.

Specifically, the target inflation rate makes 4% in 2011. A program of budget deficit is envisaged to be implemented with respect to budgetary expenses. Under the program, the deficit should make maximum 4%. The deficit will be basically financed by borrowed funds from internal and external sources. Meanwhile, 86.8% of the funds will fall on the share of external debt, which, according to forecasts, will total $43055.1mln by the end of 2011. Similar level of the external debt is an average or low credit load, which does not contain threats for its servicing.

The minimum salary is envisaged to be increased by 8.3% in 2011 in Armenia.

According to the draft budget, 86.6% of budget expenses will be allocated to the next fields: education, healthcare, social security – 44.4%; defense, provision of public order and security – 18.8%; economy fields – 15.6%, official grants for community budgets – 3.3%; state debt servicing – 4.5%.