Epress.am News from Armenia
The deficit in Armenia’s 2012 state budget is reaching that allowable limit which no longer presents a threat from the perspective of macroeconomic stability, said chair of the RA Standing Committee on Financial-Credit and Budgetary Affairs Gagik Minasyan, speaking to reporters in Yerevan today.
The MP said he noticed positive trends in the budget, noting that the first of these is economic growth, which, according to the Armenian government’s forecasts, will be around 4.2%.
Speaking about inflation, Minasyan said inflationary pressures have dropped and if there are any unfavorable conditions, they will ensure the criterion of inflation with the budget in December, 4 plus/minus 1.5 percent.
“And so under these key indicators, the following figures have been forecast for the coming year’s budget: revenues, 910 billion dram; expenses, 1 trillion 42 billion dram; and the deficit, 132 billion dram. Compared to last year’s budget, our expenses have risen by approximately 41.5 billion, and if we observe in what direction mainly this increase has gone it will become obvious that, as always, the priority is toward social [spending], which in 2012 is provided by 29% of the budget, while the development of human capital in general makes up around 48.3% of expenses. Approximately 17 billion will go toward increasing [social] assistance and pension [payments]. These will increase by 2500 drams,” he said.