2009 Budget deficit in Armenia could exceed the level of 7,5% of GDP

PanARMENIAN.Net - RA Government submitted the project of budget deficit increase to 7,5% of GDP to National Assembly, RA Prime Minister Tigran Sargsyan stated in his address delivered at "Impact of the Global Financial Crisis on Armenia: Short- and Long-run Perspectives" international scientific conference. "It's an unprecedented index for Armenia, as, within recent years, our budget deficit never exceeded 3% at the lower-than-planned level. Budget deficit in Armenia in 2009 could exceed the level of 7,5% of GDP," he said.



Sargsyan reminded that RA NA approved the 940 billion budget and he government does not intend to apply sequester. "We do not intend to apply sequester, as macroeconomic index will be negatively affected," he said, adding, "Budget deficit increase seems reasonable in this context."



RA budget deficit will be funded by Asian Development Bank (around $80 million), WB (around $50 million); AMD 24 billion of Russian credit and AMD 24 billion attracted from internal market will also be allocated, including the largest IMF-provided investment of $150 million. RA NA has scheduled an extraordinary sitting to ratify the agreement.