2016 budget indicators show big problems in Armenia – economist
YEREVAN, October 12. /ARKA/. The figures projected in the government budget for 2016 show big problems in Armenia's economy, Gagik Makaryan, the chairman of the Republican Union of Employers of Armenia, said Saturday at a news conference.
Every year's budget, he said, is a logical continuation of the previous, and it should be in tune with current processes.
«It is clearly seen in the 2016 budget that Armenia is a social state - $800 million of a $2.5-billion spending is targeted for social programs,» Makaryan said. «It means the government has to earmark huge amounts of financial resources for social needs. About $250 million is spent on education and $160 million on medical services. If things remain unchanged, Armenia can hardly implement substantial economic reforms. Its budget deficit is projected at $400 million in the 2016 government budget, and it is more than in 2015.»
The economist said that the government intends to narrow the deficit by outside financial resources.
He thinks that economic growth in Armenia is impossible because of an intense outflow of skilled specialists from the country.
The government confirmed the 2016 budget on October 1. In the budget GDP growth is projected at 2.2%, GDP deflator index at 4%, 12-month inflation at 4% (±1.5%) and budget deficit at AMD 197 billion (3.5% of GDP).
Spending is projected at AMD 1 trillion 373.7 billion and revenue at AMD 1 trillion 183 billion. ($1 – AMD 473.08). ---0----
Every year's budget, he said, is a logical continuation of the previous, and it should be in tune with current processes.
«It is clearly seen in the 2016 budget that Armenia is a social state - $800 million of a $2.5-billion spending is targeted for social programs,» Makaryan said. «It means the government has to earmark huge amounts of financial resources for social needs. About $250 million is spent on education and $160 million on medical services. If things remain unchanged, Armenia can hardly implement substantial economic reforms. Its budget deficit is projected at $400 million in the 2016 government budget, and it is more than in 2015.»
The economist said that the government intends to narrow the deficit by outside financial resources.
He thinks that economic growth in Armenia is impossible because of an intense outflow of skilled specialists from the country.
The government confirmed the 2016 budget on October 1. In the budget GDP growth is projected at 2.2%, GDP deflator index at 4%, 12-month inflation at 4% (±1.5%) and budget deficit at AMD 197 billion (3.5% of GDP).
Spending is projected at AMD 1 trillion 373.7 billion and revenue at AMD 1 trillion 183 billion. ($1 – AMD 473.08). ---0----