Expert: Armenia Should Shift From Social-Oriented Budgets To Investment Budget
01.11.2011,
16:33
Vazgen Safaryan, head of the Union of Armenia’s Domestic Manufacturers, thinks Armenia should shift from social-oriented budgets to an investment budget.
He told journalists on Monday that the 2012 government budget is socially oriented.
YEREVAN, October 31. /ARKA/. Vazgen Safaryan, head of the Union of Armenia’s Domestic Manufacturers, thinks Armenia should shift from social-oriented budgets to an investment budget.
He told journalists on Monday that the 2012 government budget is socially oriented.
He said that the funds intended for social area are planned to be enlarged by AMD 35 billion from AMD 271 billion in 2011 to AMD 207 billion in 2012.
This will make it possible to increase the pension size by AMD 3,000 and benefit size by AMD 2,700.
“But I have repeatedly said and will say again that we should shift from survival, consumer and social budgets to investment budgets,” Safaryan said. “This will ensure economic development, particularly industrial development.”
Armenia’s industry is stably growing, he said. It grew about nine percent over nine months of this year.
Speaking about other sectors, the expert said that agriculture contains weather-caused risks, and the role of construction has been overestimated – the share of construction in the most developed countries doesn’t exceed 5% of GDP, while in Armenia it reached 25%.
Pointing out that this was due to outside factors, he added that construction here was carried out at the account of the capital brought from the outside.
“Construction volumes no longer can be large in the country, since construction of residential houses is already oversaturated here, and construction can be carried out for industry and tourism areas,” Safaryan said stressing the necessity to develop industry.
According to official statistical reports, construction in Armenia faced 25.2% decline in September 2011, compared with the same month a year before.
However, construction here grew 19.4% in September, compared with the previous month, to AMD 49.1 billion.
Agriculture sector’s output in current prices amounted to AMD 169 billion in September 2011 after growing 18.6%, compared with the previous year’s September.
On September 29, Armenian government approved the 2012 draft budget. The budget revenue is projected at AMD 910 billion, spending AMD 1042.5 billion and deficit 132.5 billion here.
In this draft budget, revenue is planned to be enlarged by 6.8% in 2012, compared with 2011 (AMD 852.4 billion) and spending is projected to grow by about AMD 41.5 billion. ($1 – AMD 378.58)..-0---
He told journalists on Monday that the 2012 government budget is socially oriented.
He said that the funds intended for social area are planned to be enlarged by AMD 35 billion from AMD 271 billion in 2011 to AMD 207 billion in 2012.
This will make it possible to increase the pension size by AMD 3,000 and benefit size by AMD 2,700.
“But I have repeatedly said and will say again that we should shift from survival, consumer and social budgets to investment budgets,” Safaryan said. “This will ensure economic development, particularly industrial development.”
Armenia’s industry is stably growing, he said. It grew about nine percent over nine months of this year.
Speaking about other sectors, the expert said that agriculture contains weather-caused risks, and the role of construction has been overestimated – the share of construction in the most developed countries doesn’t exceed 5% of GDP, while in Armenia it reached 25%.
Pointing out that this was due to outside factors, he added that construction here was carried out at the account of the capital brought from the outside.
“Construction volumes no longer can be large in the country, since construction of residential houses is already oversaturated here, and construction can be carried out for industry and tourism areas,” Safaryan said stressing the necessity to develop industry.
According to official statistical reports, construction in Armenia faced 25.2% decline in September 2011, compared with the same month a year before.
However, construction here grew 19.4% in September, compared with the previous month, to AMD 49.1 billion.
Agriculture sector’s output in current prices amounted to AMD 169 billion in September 2011 after growing 18.6%, compared with the previous year’s September.
On September 29, Armenian government approved the 2012 draft budget. The budget revenue is projected at AMD 910 billion, spending AMD 1042.5 billion and deficit 132.5 billion here.
In this draft budget, revenue is planned to be enlarged by 6.8% in 2012, compared with 2011 (AMD 852.4 billion) and spending is projected to grow by about AMD 41.5 billion. ($1 – AMD 378.58)..-0---
