YEREVAN, October 14. /ARKA/. Armenian government should continue its participation in the country’s economy, Ara Nranyan, member of the National Assembly’s economic committee said Thursday in Novosti International Press Center.

“We think that the governmental mediation took not so right road and was insufficient,” he said. “It would be better to support areas, not particular companies.”

In 2009, the government provided guarantees totaling AMD 20 billion (about $54 million) to some Armenian construction companies.

Another $44 million was given to three mining companies.

The anti-crisis group set by the government looked through 300 business programs, of which 24 projects worth AMD 14.1 billion were implemented.

Nranyan said that now many developed countries are trying to restrict the government’s interference in economic policy, but Armenia should refrain from doing the same, since this could hobble economic development.

The lawmaker said that developed countries faced not so deep economic decline, while Armenia’s GDP reduced a great deal. That is why the country can’t reach its pre-crisis indicator.
According to statistical reports, Armenia faced 14.4% economic decline in 2009, and enjoyed 3.1% growth in Jan-Aug 2010.

In the 2010 government budget, GDP growth is projected at 1.2%.

“Particular steps should be taken to enlarge GDP. Unfortunately, our state does nothing for that, but takes every step to make taxes higher.”

Nranyan thinks that increased taxes and reduced spending can hobble GDP growth.-0--