PM: global recession uncovers most vulnerable sides of Armenian economy

18.11.2009 20:56
PM: global recession uncovers most vulnerable sides of Armenian economy

YEREVAN, November 18. /ARKA/. On Wednesday, Armenian Prime Minister Tigran Sargsyan, speaking in National Assembly, said the global recession has uncovered most vulnerable sides of Armenian economy and showed the necessity to diversify it.

The recession has also showed long money shortage in the country.

He said that in 2009, Armenian government focused its attention on warding off the crisis and taking bailout measures to ensure macroeconomic stability and enhance the country’s ability to resist this crisis.

Sargsyan said that the bailout measures taken by the government in an effort to lay proper groundwork for post-crisis development and creation of a new, higher-quality economy in Armenia.

“In 2009, Armenian government pursued expansionary policy aimed at fulfillment of social commitments,” he said.

The premier said that the government concentrated its efforts on implementing the large programs, one of which is construction of a new nuclear power plant.

In his words, a feasibility report is ready and some $400,000 has already been spent for the construction.

The second focus in infrastructure reformation is road recovery.

Some 360 kilometers of roads are planned to be put in exploitation later this year against 163 kilometers in 2008.

The premier reminded lawmakers that the construction of North-South transportation corridor is under way now, and Asian Development Bank has already transferred the first $60-million tranche of the 500-millon loan to Armenia.

Sargsyan said that preparations for Iran-Armenia railway construction are under way as well.

He also singled out recovery of quake-stricken areas as one of the government’s top-priority focuses.

AMD 25 billion was spent for this purpose and 1,760 flats were put into exploitation in 2009.

Besides, 400 million was spent under the housing certificate program.

The prime minister said the government also pays great attention to support for small- and mid-scale businesses.

The government has allocated AMD 18.5 billion from the Russia-extended loan for this purpose.

The government also implemented substantial tax reforms this year to ease tax burden for small and medium enterprises, which saved AMD 16.6 billion thanks to these reforms.

These reforms simplified tax report submission by such companies.

The 2010 state budget revenue is AMD 676.6 billion, expenditure AMD 859.6 billon and deficit AMD 183 billion.

One dollar is expected to cost AMD 376 in 2010. -0---

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