RA Minister of Finance: Reduction of the deficit in 2010

“2009 will be covered within 6.5 % deficit of the state budget. The state budget deficit will reduce and will comprise 5.0-5.5 % by 2010, and for the following years we will try to reach 3.0 %, which was registered before the crisis”, - today at the press conference said Tigran Davtyan, RA Minister of Finance.

As to him, the current deficit is 67 billion drams in relation with the Gross Internal Outcome which comprises 4.7 %. The Minister mentioned that the deficit will not exceed 7.5%.

In the first 7 months of 2009, the budget performance results comprised 359 billion drams collected income and 426.5 billion drams expenses. As to T. Davtyan, the data provided by the Statistics Office, were not surprising, as they had been foreseen by the international institutions and RA corresponding departments.

The Minister mentioned that in the first 7 months of 2009, the Gross Internal Outcome was reduced more than 18 %, which was due to several reasons, but the basis was the global economic crisis. The price raise is low and even some deflation is observed.

“The financial flows and the budget performance correspond to the present economic situation of RA”,-thinks T. Davtyan.

As the Minister mentioned, the level of the Gross Internal Outcome drop, as compared with that of the first 7 months of the last year, was higher, as last year the base was high.

“During last June-July the economy reached its top”,-said Davtyan.

T. Davtyan thinks that in September-October this year the numbers will improve and we will have better results, as the economic crisis started at the beginning of the last year.

Some intentions of stability are observed in the economy, and according to the Minister, these intentions are to be secured. He said that the end of the crisis is evident in the economic life of the USA, Europe, Russia, and this will have its positive effect on our economy too.

“The results will be more satisfying in the terms of a year than those within 7 months. The drop in the economy will comprise less than 18.5%, nearly 10-15%. Next year the economy will recover, and 1-1.5 % economic raise will be registered”,-predicts T. Davtyan.