Tigran Davtyan: Budget sequestration inappropriate in crisisAugust 28, 2009 - 17:33 AMT PanARMENIAN.Net - In a crisis, the budget sequestration is impractical, because if the economy is in a recession, it is important to increase spending and pursue expansive policies, Tigran Davtyan ,Armenia's minister of finance told a press conference in Yerevan today. According to him, since the state is a serious player in the economy, its task in these circumstances is to attract additional resources and increase costs, like all the world countries do, if feasible. "Despite the decline in incomes all over the world, governments try not to reduce costs in order to stimulate the economy. Reduced costs will mean a further negative impact on the GDP of the country," Mr. Davtyan explained. In this context, in case of sequestration and reduction of income, a decline in GDP for the past seven months in Armenia would surpass 18.5 per cent. As Tigran Davtyan stressed, the government of Armenia has reduced the income of the budget and increased its expenditure, and it was decided to compensate the gap at the expense of borrowed funds. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | U.S. warns Georgia not to side with Moscow against the west Georgia has been warned by the U.S. not to become an adversary of the west by falling back in line with Moscow. Power of One Dram sums up two-year program with Teach for Armenia Idram Junior also joined the companies during the visit, bringing with it a fascinating intellectual game for children Moscow slams EU mission in Armenia for “provocative activity” The EU mission is doing more and more against Armenia’s neighbors Russia, Azerbaijan and Iran, Mikhail Galuzin said. Yerevan Mayor to travel to Paris on May 15-19 The official delegation headed by Yerevan Mayor Tigran Avinyan will travel to Paris from May 15 to 19. |