Tuesday, October 30 2012 18:17
Chairman of Central Bank of Armenia: In 2013 high economic growth rates and budget deficit reduction to gradually reduce government debt load
ArmInfo. In 2013 high economic growth rates of Armenia and budget deficit reduction will gradually reduce the government debt load, Chairman of the Central Bank of Armenia Artur Javadyan said in Parliament on Tuesday when presenting the conclusion on Armenia's budget 2013.
He pointed out that the budget deficit will continue declining to 2.6% of GDP in 2013. As regards the CBA's debt, he added that the first debt was formed in 1994, and it increased to 130 mln USD or 75% of the international reserves of that time. At present the CBA's debt is 32% of the total government debt against almost 50% of the total government debt of 1996.
Javadyan pointed out that the 10.1% nominal growth of budget expenditures of 2013 will be amid 0.6% of GDP expenditures. Capital expenditures will grow by 33% to 16.9% of the total expenditures, and 4.3% of GDP (0.8% y-o-y growth), which will allow ensuring economic growth. Social expenditures will make up 10.6% of GDP. Effective coordination of the fiscal and monetary policies will ensure macroeconomic stability, which will keep inflation within the target range 4% ( 1.5%).
In 2013 capital investments for acquisition of permanent assets will drop by 42% to 20 bln AMD, of which 12 bln AMD will be invested in housing construction. Administrative costs will be 6.1 bln AMD against 5.9 bln AMD in 2012 (3% y-o-y growth). In their structure the expenses for maintenance of the administration will total 5.8 bln AMD against 5.6 bln AMD in 2012 (3% y-o-y growth). The number of the administration's employees will be 810. Javadyan said that part of the CBA employees will move to Dilijan and will be provided service housing and acquisition of housing by mortgage.
To note, 6% GDP growth is budgeted for 2013. The budget deficit is expected to be 119.7 bln AMD, budget expenditures - 1,152.7 trillion AMD, and revenues -1,032.9 trillion AMD.
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