YEREVAN, November 17. /ARKA/. Armenian government will make every effort to return to the stable economic development policy, Prime Minister Tigran Sargsyan said Wednesday in the National Assembly.

Presenting the 2011 draft government budget to lawmakers, he said that top-priority objectives for 2011 are indicated in the government’s activity program and the sustainable development strategy.

The government will try to replace its anti-crisis policy with sustainable development policy.

Sargsyan said that the government views diversification of the country’s economy, stimulation of export-oriented segments, enlargement of budget spending for social sector, development of infrastructures and provision of additional impetuses to economic growth as its top-priority objectives.

He said that along with that, the government would continue the economic reforms it has already launched.

The premier said that the government would continue its efforts to ensure a stable economic growth to the country and to retain macroeconomic indicators.

Under the current macroeconomic policy, budget deficit will be gradually narrowed and the state debt will be deterred from growing.

Sargsyan said that inflation is projected at 4±1.5% in the 2011 draft government budget and budget deficit is planned to be no higher than 4% in 2011.

He said state debt would amount to AMD 4.3 billion.

In his opinion, it is not so difficult to serve such a debt.

The prime minister also said that the government would intensify tax inflow in 2011 without raising tax rates.

Tax receipts are expected to total AMD 675 billion this year, while in 2011 they are planned to amount to AMD 773 billion.

The government will continue providing tax preferences also in 2011.
“Tax ratio to GDP will be higher as well,” Sargsyan said. “This will be achieved thanks to tax administration improvement.”

In 2011, the government’s program will be based on targeted programs mainly focused on diversification of economy and improvement of Armenia’s reputation of being a reliable partner.

The government also plans to raise minimum salary by 8.3%.

The premier said expenses for social sector make up 86.6% of the 2011 budget spending.

On September 30, the Armenian government approved the 2011 draft budget.
This budget spending is planned to come close to AMD 1 trillion in 2011, the budget revenue is projected at AMD 849.9 billion and deficit at AMD 148.6 billion.

GDP growth is projected at 4.6%.-0---