2017 will be a year of stability: Finance Minister
The Government should not only point out challenges, but also have the key to them and provide solutions. RA Finance Minister Vardan Aramyan told reporters today, that state budget 2017 reflects economic realities. In his words, PM’s assessment on complicacy of the economic situation is a reality, however, negative anticipations shouldn’t be developed.
“We appeared in a situation, which is peculiar not only to Armenia, but economic to our region and the world,” Vardan Aramyan said, stating that 2 big developments have been recorded in economy since 2014-2015 —imposing sanctions against Russia and decline of prices for raw materials in the world market.
In his words, 50% of Armenia’s export comprises mining materials, and throughout the last 2-3 years transfers have been reduced by USD 700 million, this year they’ll reduce by USD 140 million and that much foreign currency didn’t enter Armenia.
V.Aramyan compared economy with human organism, which is being exhausted from cold winds and doesn’t recover right after the pillow has been taken.
The newly appointed Minister stated if the Government didn’t initiate means, then the result would have been negative. He noted that in the period of 2014-15-16 Armenia’s debt has grown by USD 900 million, i.e. just as much as transfers have been reduced.
The minister stated that about 2.4% real growth is anticipated in 2016 instead of preliminarily anticipated 2.2%, and index of economic growth for 2017 was anticipated 3.2%. According to him, it’s planned that this year will be accomplished with 1.6 trillion tax index, which is less by 80 billion, than anticipated. Expenditures will comprise AMD 1 trillion 360 billion.
According to V.Aramyan, it’s impossible to reduce expenditures a few times, however, as the debt has grown, they should go to consolidation to keep the debt manageable. He brought as an example Turkey, which in 2004 faced the issue of debt uncontrollability. Vardan Aramyan doesn’t observe likewise risk for Armenia. In his words cash flows should be properly managed, and in Turkey the issue was that economic growth wasn’t recorded under debt overgrowth, and in case of our country there is growth and is anticipated in the future as well.
“We lived under external negative impetuses, however, next year expectations will be positive, Russia’s economy and exchange rate have already stabilized,” he stated.
He stated that there AMD 150 billion shortage is recorded for the following year, 70 billion of which will be provided on account of internal sources, and other 80 billion, on account of external sources. The Minister stated that they planned not to anticipate debts much, which means unnecessary charges and income amounting AMD 1 trillion 210 billion is anticipated.
According to the assessments by V.Aramyan GDP 4.4% growth is needed to record ascension, and 2017 will be a year of stability.
By Gayane Khachatryan
