Armenian PM: macroeconomic indicators of 2008 state budget contain anti-crisis component

YEREVAN, December 29. /ARKA/. Armenian Prime Minister Tigran Sargsyan thinks that the macroeconomic indicators of the 2008 state budget contained an anti-crisis component.

“Those macroeconomic parameters that have been put in the 2008 budget and implemented, laid a firm groundwork for warding off the financial crisis. But our opponents play down this for some reason, omitting the anti-crisis component”, he told reporters.

The premier said that it was clearly mentioned in talks with World Bank and International Monetary Fund that the implementation of macroeconomic indicators means the creation of favorable environment for resisting the impacts of the global crisis.

Sargsyan also said that considerable enlargement of tax inflow added a great deal to the state budget in 2008.

“We have raised these indicators three times. These are special-purpose indicators of our tax officers. In fact, we have corrected the budget’s tax-collection sector – the actual GDP growth was higher than planned. It means a new cost is being created in the country. Hence, tax inflow has to intensify. That is why the government was raising control figures on revenue and reducing expenses simultaneously”, he said.

The premier said that expenditure reduction and revenue enlargement gave the state additional strength and enabled it to resist the consequences of the crisis.

Sargsyan said that the government has displayed the same approach in drawing the 2009 state budget.

“Very low deficit – 0.9% - has been put in the 2009 budget. This is a very low indicator even compared with developed countries. It means our country is precipitously growing strong and we can afford to spend more money without fearing that this can affect macroeconomic indicators”, the PM said.

He said that the government has already started negotiating with its strategic partners over attracting additional funds for large-scale projects.

Sargsyan said that signs of deflation are already seen in Armenia.

“Inflation rate in November and December has never been as low as it was in 2008”.

The inflation rate recorded in Armenia in 2008 has come from the world financial and trade markets.

“We brought 70% percent of the 2008 inflation from the outside, and now these inflation risks have precipitously reduced thanks to the lowered prices for bread, wheat and lubricants on world markets”, the PM said. “This creates a favorable environment for expansion policy”. M.V.-0---