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).
