Epress.am News from Armenia
The Republic of Armenia 2011 state budget bill, in terms of its contents, reflects the country’s main strategic directions of development, said RA Prime Minister Tigran Sargsyan in his remarks introducing the FY2011 state budget bill during today’s National Assembly plenary session.
The prime minister presented the aforementioned directions in a few points. As a first point, Tigran Sargsyan noted, from the point of view of ensuring stable rates of economic growth, the government stresses the importance of retaining achieved macro-economic stability.
Secondly, the Armenian PM noted that the pursued macro-economic policy implies gradually reducing the budget deficit and reasonably restricting the growth of state debt, that is, with a regime of floating currency, according to a Government of Armenia press release.
In particular, Tigra Sargsyan said, he predicts 2011 target inflation rate to be around 4% with a 1.5% corridor. He is also planning a budget deficit program in 2011 which assumes that the deficit won’t rise about 4%. The deficit will be mainly financed by borrowed funds and internal and external resources, of which 86.8% will go toward foreign debt. It is expected that by the end of 2011, Armenia will have a foreign debt worth about $43 billion USD.