Friday, November 18 2016 12:17

ArmInfo. The Draft Budget  2017, submitted by the Government to the parliament today, does not  conform at all to the country's development program, recently  developed by the Government, expressed his opinion economist Mikael  Melkoumyan, a lawmaker from the party " Prosperous Armenia" at the  budget  discussions in Parliament, criticizing the key financial  document presented by the Government.

According  to Melkoumyan, the submitted Draft is absolutely incapable   to secure the development of the country. " The planned growth of  3,2% could only secure the survive of the country, but not it's  development," Melkoumyan stated. 

The law maker was also astonished with the fact that new Government,  in fact, has cancelled all the promises and plans of the previous  Ministers' Cabinet. "  That Government promised to open 100 000 new  jobs in villages and 70 000 in cities and towns areas. It has been  also promised to secure conditions for small and medium business  development. But all these promises didn't find their reflection in  the draft budget," law maker stated. 

He also criticized the Central bank work, due to the lack of tax  collections estimated at AMD 60 bln.. He also appealed to the Public  Services Regulating Commission to show a political will and "punish"  those entrepreneurs, who have received  extra- benefits at the cost  of consumers. 

Resuming his speech, Melkoumyan sounded his advice to the Government:  " Learn working, gentlemen, to get higher respect." 

The 2017 Draft Budget estimates the GPD nominal growth at 5%, or AMD   5405 bln. The economy growth will form 3,2%, within the deflator   index  of 1,7 (which, according to the Ministry of Finance, this year  will form around 2,4%), with a deficite of  AMD 150,1 bln. The GDP   deflator index is not set as per  the end of the  current year, and   in 2017 this indicator will form around 101,7%. The balance part of   the budget is planned to increase  for AMD 27 bln up to AMD 1.210 bln    in 2017, and the expenditures part should be decreased for AMD 13 bln   down to  AMD 1.360 bln ( according to the current rate - about USD 2,   87 bln).  The incomes/ GDP correlation is 22,4%. In the revenues part   USD 1.135 bln will be capsulated by taxes and fees ( versus AMD 1.065   bln in 2016), AMD 31 bln will be formed by grants (versus 31,3 bln   in 2016), AMD 44 bln - other incomes (versus 25,8 bln in 2016).