Vardan Aramyan: The country will lead additional incomes of the budget to infrastructure development - improvement of roads and irrigation systems

ArmInfo.  Armenian Government is  intended to drive additionally collected assets  at AMD 50 bln  to  the infrastructure development projects. " I think, today it would be  more justified to invest the amount stated and to generate the added  value, which, in its turn, could be led for maintaining the state  debt, " Vardan Aramyan, Armenian Ministry  Charge D'Affair  stated in  his interview to ArmInfo. 

According to Aramyan, as far as  budget tax incomes based on the  results of QI have already exceeded those planned for AMD 13 bln, the  Government took a decision to review the item of capital expenditures  to the increase of those. The economic activity has also exceeded the  expectations, marking the level of 6- 6,6%. " Already in annual view  the Government expects for additional tax-based incomes forming about  AMD 50 bln, and accordingly plans to increase the capital  expenditures respectively, which will give an option to plan higher  indicators of economic growth for 2018," Aramyan said, mentioning  that for today Government goes for GDP growth higher indicators, than  those set in 2017 budget. 

At the  same time, according to him, the Government does not forget  that similar targets Armenian economy has taken also in the first  semester of 2016, which was followed by the period of economic  slowdown. Aramyan himself had stated many times that the economic  activity indicator could drop down a bit proceeding from basic effect  of its growth   from the middle of last year. Besides, according to  the head of Armenian Financial Entity, Armenian economy has a  traditional "postponed" effect depending on Russian one, and negative  tendencies there impact the local economy with a certain delay. "  Let's suppose for a moment  that international market shows a sharp  drop[down, which is reflected  on export, financial flows and, as a  result, we get lower speed of economy growth. In this case, within  the framework of anti- cycle policy, when the demand has already  fixed its natural dropdown, the Government has to go in other way -  reasonably increasing the capital expenditures through involving new  loans, allowing with that some increase of budget deficit, of  course," the Finance Minister stated. 

He accentuated that within the framework of this policy, the  additional income of the budget forming AMD 50 bln, will be led first  to infrastructure projects - improvement of roads and irrigation  systems. " this strategy has its philosophy. But today, despite  all  our calls for private sector to  make investments in the development,  within the absence of appropriate quality of roads and other  infrastructure units, one could hardly hope for that. The investments  should be motivated by highly developed infrastructure," Armayan  accentuated. 

To recall, according to Armenian State revenue Committee Head Vardan   Harutyunyan estimates. Armenia in 2017 QI an unprecedent level of  state incomes - AMD 255 bln instead of  242 bln planned. The volumes  of shadow economy have also essentially decreased  - from 48,8% down  to 33,2%. From October 2016 and until April 2017 the Committee  secured AMD 653,8 bln. Tax collections, which is 7,6% higher if that  for  the similar periods of 2015-2016.  AMD 500,3 bln of the amount  collected was provided by tax authorities, and AMD 153,5 bln - by  customs entities. In respect to tax incomes the growth formed AMD  43,1 bln  or 9,4%, in respect to tax fees  - AMD 3 bln, or 1,9%.