Real tools for industry promotion foreseen in Armenian budget first time

07.12.2012 17:10
Real tools for industry promotion foreseen in Armenian budget first time

YEREVAN, December 7. /ARKA/. For the first time, Armenia’s government budget document suggests real mechanisms to support and promote industry, the head of Armenian Union of Local Manufacturers Vazgen Safaryan said.

Under the 2013 budget passed on December 5, the government projects consolidated receipts to be at 1trlnm 32.7bln drams and outlays at 1trln 152.5bln drams.
Safaryan said the budget earmarked some 300mln drams for industry promotion. This money will be spent to create an industry fund.

Safaryan also informed that the Armenian Union of Local Manufacturers is going to ask the private sector to make their contributions to the fund.
According to him, the fund is able to help develop many fields, particularly the light industry that is currently in depression.

Safaryan said he would prefer investment-oriented rather than social-oriented budget.
Yet, having a budget provision about the industrial fund is a breakthrough as it destroys stereotypes of industry not needing support from the government, Safaryan told a press conference in “Novosti” international press center.

According to the expert, there is another important step taken toward industry promotion – creation of an export crediting agency in Armenia.
On November 22, Armenian government approved the measures to found an export crediting agency.

According to Safaryan, the agency will enable the government supporting many exporters.
Export credit insurance is a practical decision made under the government’s strategy of export promotion, Safaryan said adding that the agency’s credit package is about 4bln drams.
In the next development stage the export crediting system is expected to run itself on self-finance and market rules.

Armenia’s industrial output totaled about 700mln drams in the first 8 months of 2012.
Under the 2013 budget, revenues from taxes and duties are anticipated at 993.08bln drams, which is 118.7bln more from 2012. The deficit is projected to be at 119.7bln drams or 2.6% of the GDP.
The twelve-month inflation rate is projected at 4±1.5%, and GDP growth - at 6.2%. ($1=407.71drams). –0—

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