Tuesday, November 1 2011 18:53
Central Bank of Armenia: The draft budget for 2012 reflects the expected macroeconomic stability and economic growth
ArmInfo. The macroeconomic development in Armenia over Jan-Aug 2011 was due to the outstripping growth of export as compared to import under conditions of decelerating growth rates in the world economy, as well as due to gradual recovery of the domestic demand, Chairman of the Central Bank of Armenia (CBA) Arthur Javadyan said in parliament on Tuesday, when presenting the CBA's conclusion on the draft budget 2012.
According to him, the economic growth in Q2 of 2011 rose to 3.9% against 1.2% in Q1 2011. He recalled that in Q1 2011 the key spheres ensuring economic growth were industry and services, and by Q2 agriculture was added to them. "At the same time, positive trends were observed in inflation reduction, which made up 4.8% in Aug, 5.7% in October, and the inflation since early 2011 made up 0.9%", Javadyan said.
The fiscal policy remains loyal to the principles of deficit reduction policy and achieved great success over Jan-Aug 2011. In Jan-June 2011 the monetary policy was also restraining. According to the data of Jan- Aug 2011, the tax revenues and social payments met the targeted indices. As compared to the same period of 2010, the tax revenues and social payments grew by 10%. As a result of coordinated fiscal and monetary policies, the inflation will make up 4+/-1.5%.
Javadyan said that the CBA's conclusion on the draft budget 2012 is mostly based on the key provisions of the midterm expenditures of Armenia and reflects the expected macroeconomic stability, continuation of the governmental programs ensuring economic growth.
As regards the policy of budget expenditures, Javadyan added that the 4.1% expenditure growth will be accompanied by 1.1% reduction of the expenditures against GDP. "I also attach much significance to the effectiveness and targeting of the budget expenditures, which will make it possible to ensure 8.8% growth of expenditures on various social spheres and 30.3% growth of expenditures on salaries", he said.
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