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NEWS » Economy » Economy minister lashes out at finance ministry for denying funding for new projects
Economy

Economy minister lashes out at finance ministry for denying funding for new projects

26.07.2023, 18:28
Presenting today a draft budget of the ministry for 2024 to a parliamentary committee, Armenia’s Economy Minister Vahan Kerobyan, expressed dissatisfaction with the Ministry of Finance, which ‘turns down projects and does not allocate funds for the projects already approved by the government.’

Economy minister lashes out at finance ministry for denying funding for new projects

YEREVAN, July 26. /ARKA/. Presenting today a draft budget of the ministry for 2024 to a parliamentary committee, Armenia’s Economy Minister Vahan Kerobyan, expressed dissatisfaction with the Ministry of Finance, which ‘turns down projects and does not allocate funds for the projects already approved by the government.’

He said his ministry requested 138.8 billion dram funding for next year, but the Ministry of Finance slashed it to 84.7 billion drams.

According to him, the Ministry of Finance has also reduced to almost zero the funds requested for agriculture

"We constantly talk about the need to create effective infrastructure, but when we want to improve the quality of these infrastructure and it comes to concrete steps, we constantly bump into the same wall," the minister said.

Kerobyan cited several other projects that have not been approved, but could ensure economic growth. In particular, advertising campaigns for the development of tourism industry and support for small and medium business.

In his turn, Deputy Finance Minister Vahan Sirunyan noted that funding decisions are made taking into account the expected budget revenues, which is why the ministry insists that the sources of financing strategic projects are specified.

In response to this, Kerobyan said that the Ministry of Finance can allocate additionally 2 trillion drams to finance a string of projects as part of 2024-2026 medium-term expenditure program, but for doing so it is necessary to raise the ratio of state debt to GDP.

In particular, he pointed out that today this ratio is 48%, while according to the program of the government, the ratio should be cut to 55% in 2026 only. Kerobyan claimed that the Ministry of Finance has artificially set the upper limit of this indicator at 48% for 2024.

Sirunyan responded that the Ministry of Finance cannot approve an increase in the expenditure if there are no guarantees of revenues that will be able to cover the debt. -0-

 

 

#ARMENIA
#ECONOMY MINISTER
#VAHAN KEROBYAN
#DISSATISFACTION
#MINISTRY OF FINANCE
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