Prime Minister of Armenia urges Cabinet to submit draft budget 2017 in lay terms

ArmInfo. Prime Minister of  Armenia Karen Karapetyan urged the Cabinet to submit the draft budget  2017 to the Parliament in lay terms. He recalled that discussions on the Budget-2017 will start at the  parliamentary commission on October 31 and stressed that the budgets of the sectors must be based on the government program. In  particular, it is necessary to present in lay terms the approaches  and principles of the budgets per sector to the parliamentarians and  the public.

The prime minister charged the ministers to present the  expenses envisaged in their sectors along with the anticipated  results and the terms of their implementation, so that the  parliamentarians could see "the goal and the expediency of the  expenses envisaged." 

The Government approved the draft Budget 2017on September 29. The  prime minister said the Budget 2017 will be tough. "The key principle  set in the next year's budget is sustainable tax-budget policy and  debt stability", the Finance Minister stated presenting the document.  According to him during 2014-2015 rather high level of state deficit  was registered in Armenia-4.8%. This year the deficit will most  likely reach 5.9%, he noted adding that this is the main reason of  debt formation. "As the result of this, within two years, in  2014-2015 debt increased from 43.7% to 54.4% by the end of this  year", Aramyan stated. Consequently, the Minister noted that in the  future more conservative policy should be conducted not to allow  further growth of debt.  "Considering this we have been relatively  conservative when calculating expenses and the state budget  expenditures are planned at 1 trillion 360 billion drams. In such  case budget deficit in 2017 will be within 2.8%, which is almost  two-fold lower than the current year's indicator", the Minister  stated noting that budget expenditures will total about 1 trillion  444 billion drams at the year end 2016. Vardan Aramyan noted that due  to administrative mechanisms additional tax revenues are expected  next year, as a result revenues will total 1 trillion 210 billion  drams. 

According to him, economic growth in Armenia in year-end 2017 is  forecasted 3.2%, amid deflator index 1.7%. The Minister noted that  the growth is moderate but everything should be considered in  comparison, particularly, this year most likely economic growth will  be around 2.4%. Economy growth will be ensured due to a number of  fields, particularly 5% growth is expected in industrial field, 4%-in  agriculture, no growth is expected in construction sector in 2017 and  around 2% growth is expected in services. 

Aramyan stated that the inflation is planned within 4% (+1.5%) and  stressed that the Ministry will coordinate its policy with the CBA in  order to ensure macroeconomic stability.