Social spending for 2011 increases by 7 percent
10.12.2010,
22:23
Gagik Minasian, chairman of a parliament committee on budget, finance and credit issues, said today the government has increased social spending for 2011.
YEREVAN, December 10, /ARKA/. Gagik Minasian, chairman of a parliament committee on budget, finance and credit issues, said today the government has increased social spending for 2011. The final version of the 2011 budget was approved by the parliament on Thursday. It calls for a 7 percent rise in public expenditures. The budget was passed by a vote 80 vote to 14 and with two abstentions, committing the government to spending just over 1 trillion drams ($3.1 billion), up from 935.5 billion drams projected for this year.
Speaking at a news conference Gagik Minasian said although Armenia is in a state of ‘no war, nor peace’ with Azerbaijan, the government has earmarked half of its spending for social expenditures to be channeled into education, health, ecology and other sectors.
‘This is very important because we are showing Azerbaijan and the world that even under these conditions social policy remains a government’s priority, ‘ he said. According to him, this policy will have no alternative until minimum wages and benefits reach the subsistence level.
The government’s overall revenues are to rise by about 15 percent to 852 billion
Drams. The resulting budget deficit would be equivalent to 3.9 percent of Gross Domestic Product. These targets are based on the assumption that the Armenian economy will grow by 4.6 percent in 2011.
Gagik Minasian said t
he Armenian military will remain one of the main recipients of public funds in 2011. The government’s defense spending is projected to rise by 11.5 percent to 146 billion drams ($405 million).
‘We need to preserve the social orientation of the budget, but must not forget either that we have an enemy and this is why military spending is another priority,’ he said.
Representatives of the
Heritage and Armenian Revolutionary Federation, which make the parliament’s opposition minority, voted against the budget, saying the budgetary targets will not help boost living standards and improve the investment climate. ($1 – 359.68 Drams). -0-
Speaking at a news conference Gagik Minasian said although Armenia is in a state of ‘no war, nor peace’ with Azerbaijan, the government has earmarked half of its spending for social expenditures to be channeled into education, health, ecology and other sectors.
‘This is very important because we are showing Azerbaijan and the world that even under these conditions social policy remains a government’s priority, ‘ he said. According to him, this policy will have no alternative until minimum wages and benefits reach the subsistence level.
The government’s overall revenues are to rise by about 15 percent to 852 billion
Drams. The resulting budget deficit would be equivalent to 3.9 percent of Gross Domestic Product. These targets are based on the assumption that the Armenian economy will grow by 4.6 percent in 2011.
Gagik Minasian said t
he Armenian military will remain one of the main recipients of public funds in 2011. The government’s defense spending is projected to rise by 11.5 percent to 146 billion drams ($405 million).
‘We need to preserve the social orientation of the budget, but must not forget either that we have an enemy and this is why military spending is another priority,’ he said.
Representatives of the
Heritage and Armenian Revolutionary Federation, which make the parliament’s opposition minority, voted against the budget, saying the budgetary targets will not help boost living standards and improve the investment climate. ($1 – 359.68 Drams). -0-
