Friday, January 13 2017 17:40
Naira Badalian

Karen Karapetyan: Armenian government tried to set maximum feasible economic figures in budget of 2017

ArmInfo. ''As I have already said, Armenia's economy was and remains in complex condition. However, this does not mean that it can not be managed'', Armenian Prime Minister Karen Karapetyan stated at the press conference summing up the results of the 100 days of his premiership.  According to him it is impossible to ensure immediate solutions to the accumulated problems. "However, our task is to create conditions for solving those problems, for economic development so that ordinary citizens can feel the results of these steps in future. I am convinced that we are on the right path'', he stressed.

Karapetyan said that the government attempted to set maximum feasible economic figures in the budget of 2017. The Prime Minister noted that as of today there are no big threats of not meeting the expectations set forth in the document.'' Today trends and fundamentals that will be set for development of economy are important rather than the numbers, also though we should work on results as well'', he stated.  That is why according to him the government performs two functions, which are somehow in contrary to one another. ''The first one is 'sanitization' of state governance, reduction of expenses, toughening terms of attracting loans. However, drop of economic activity, expenses and monetary contraction on the market have negative economic impact'', the Prime Minister explained. This sanitization can not ensure economic growth. On the other hand the government is given a task to improve wellbeing, for which capital expenditures should be increased; additional loans should be attracted to run enterprises. ''The solutions to these two tasks are different. As of today we need to bring them together,to find a common solution and define target of expenses, in order to ensure economic growth without raising loans'', Karapetyan stated.

At the same time Karapetyan emphasized that the upcoming parliamentary elections are an obstacle for economic growth. ''Even an ordinary citizen plans to buy furniture after April 3 (parliamentary elections, ed. note),  not mentioning business" Armenian Prime Minister stated.  At the same time Karapetyan assured that the level of paying capacity of Armenian citizens has not fallen in 2016.  Moreover, according to him the average prices fell throughout the country. As for the reduction of consumption level, Karapetyan justified it with overall condition of economy.

TO note, draft budget of 2017 envisages the GDP nominal growth at 5% or 5405 bln AMD. Economic growth will make up 3.2%, deflator index - 1.7, and the deficit - 150.1 bln AMD. In 2017, the GDP deflator will make up about 101.7%.  The budget 2017 revenues are expected to grow by 27 bln AMD to 1 210 bln AMD, and the expenditures are expected to decline by about 13 bln AMD to 1 360 bln AMD (22.4% revenues-to-GDP ratio). In the structure of revenues, tax revenues and state duties will amount to 1 135 bln AMD (versus 1 065 bln AMD in 2016).

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