Armenia may raise level of budget deficit to 2.3% of GDP, IMF resident representative says

31.10.2014 19:21
Armenia may raise level of budget deficit to 2.3% of GDP, IMF resident representative says

YEREVAN, October 31. / ARKA /. Armenia may raise the level of its budget deficit to 2.3% of GDP, instead of the earlier projected 2%, IMF Resident Representative in Armenia, Teresa Daban Sanchez, said at a news conference today.

She said given well-managed macroeconomic policy, the government may pursue economy stimulating policy in 2015 and increase the budget deficit to 2.3% of GDP in the first place by increasing spending on capital and infrastructure projects.

According to her, that would allow the government to channel additional funds into the economy to have a positive impact on all sectors. She said the Armenian government can do so because of its failure to fully meet its 2013 and 2014 spending targets.

Consequently, the state budget deficit in 2014 is expected to be only 1.5% of GDP. Besides, Armenia may attract funding from donors and from sale of Eurobonds, she added.

Armenia’s 2014 budget calls for 1 trillion and 135 billion drams in revenues and 1 trillion and 245 billion drams in spending. The projected budget deficit is 110 billion drams or 2.3% of GDP.

The draft state budget for 2015 calls for 1 trillion and 221 billion drams in revenues (nearly $2.9 billion) and 1 trillion and 337 billion drams in spending ($3.1 billion). The projected deficit is 116.6 billion drams. . ($ 1 - 411.74 drams) -0-


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