Armenia’s 2013 budget draft oriented at reducing consequences from outer negative impacts- MP

YEREVAN, November 19. /ARKA/. Armenia’s 2013 state budget draft will allow to minimize consequences of the global economy’s unfavorable developments, the head of the commission for financial, credit and budget affairs, a member of the ruling Republican party, Gagik Minasyan said Monday.

“As to the global economy, the recent forecasts are quite pessimistic. Many countries register high inflation rates. Investments slashed in Europe. GDP growth at 0.1-0.2% is already a good indicator for the European states. Of course, everything may have an impact on Armenia too, and we have taken into account these factors,” he said. 

According to Minasyan, in this context Armenia expects to post high rates of economic growth bearing in mind that world GDP growth is forecasted at 3.3% in 2012, and 3.6% in 2013.

“In general, throughout the CIS, GDP growth is expected to be at 4% in 2013, considering that many of these states are energy exporters,” he said reiterating that Armenia expects to post 7% GDP growth in 2012, and 6.2% in 2013.

Minasyan also said GDP high rates will be mainly ensured due to cooperation between the state and the private sector as the government will conduct export-oriented industrial policy. 

“As to the other priority sphere, agriculture, the state has implemented agricultural loans subsidy programs, providing diesel fuel, equipment and seeds. As a result, the growth of the sector was nearly 10% from a year earlier,” he added.

According to Minasyan, 2013 budget is quite a balanced document, that meets all outer challenges of Armenia, and ensures the ground for the further economic development. 

Vote on the draft will be held in the National Assembly on December 3.

Armenia’s oppositional political parties, such as Heritage, the Armenian National Congress, ARF Dashnaktsutyun, and a party defining itself as alternative, Prosperous Armenia, declared Thursday they would vote against the 2013 state budget draft.

Republican Party (69 seats in a 131-seat parliament) and Orinats Yerkir (6 seats) factions said they would vote for the budget draft.

The revenues of the consolidated budget are supposed to account 1 trillion 31 billion, the expenditures- 1 trillion 151 billion drams, and the deficit- 120 billion drams or 2.6% of the GDP. Revenues from taxes and duties are anticipated at 992.9 billion drams, which is 118.6 billion higher from 2012. The rate of a twelve-month inflation is projected at 4±1,5%, and GDP-at 6.2%. ($1-407.38 drams). -0-