Gagik Minasyan: three reasons behind Armenian budget shortfall

28.10.2016 17:02
Gagik Minasyan: three reasons behind Armenian budget shortfall

YEREVAN, October 28. /ARKA/. According to Gagik Minasyan, the chairman of an Armenian parliamentary committee on finance and budget issues, there are three major reasons behind the predicted 60 billion budget shortfall this year. According to official figures, the shortfall in late September hit the 40 billion mark.

In his words, the first reason is the lower-than-projected economic growth, which already translates into 60 billion drams shortfall. The second reason is deflation, resulting in the decrease of revenues in the first half of this year.

According to the National Statistical Service, the economic growth in the second quarter was 1.5%, down from 4.5% registered in the first three months of the year. The government’s projection of GDP growth for 2016 is 2.2%, while the deflation in first six months was 3.3%.

And the third reason, according to Minasyan, is a dramatic decline in money remittances sent home by Armenian labor migrants in Russia.

Among positive trends, Minasyan said is the increased ratio of exports to imports, which should be maintained along with boosting domestic consumption. He said the planned budget deficit for 2017 will be less than for this year.

According to the Central Bank, money transfers to Armenia in the first 8 months of 2016 declined by 10% from the year before to $914 million. -0-


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