Armenian opposition criticizes next year budget

YEREVAN, November 20, /ARKA/. Armen Martirosian, a parliament member from the opposition Zharangutyun (Heritage) party, lashed out today at the draft 2010 budget saying it ignores a set of important questions. He said his party would vote against it.

Speaking at a parliament briefing he said both spending and revenue items of the budget as well as allocation of government funds must be reconsidered. He added that the government had ignored the inflation factor while drafting next year’s budget.

Ara Nranian from another opposition party-the Armenian Revolutionary Federation (ARF)- said next year’s budget does not inspire optimism because the living standards will be worsening due to the dwindling money transfers from Russia and other countries from Armenian labor migrants, stagnating salaries and social benefits.

As a result, he said, Armenian citizens will be spending less which in turn would affect local producers.

According to Ara Nranian, the draft 2010 budget does not offer ways how to improve the business environment and attract investments.

Heghine Bisharian from the Orinats Yerkir (Country of Law) coalition partner, disagreed with both saying next year’s budget, despite the limited resources, would ensure consistent implementation of all projected programs.

Galust Sahakian, a deputy chairman of the governing Republican Party and head of its parliamentary faction, singled out the social spending item of the budget saying it will not be cut. He described it as ‘logical’ saying also revenues will start growing from H2, 2010.

According to the 2010 draft budget, the government plans to collect 676. 6 billion Drams of revenues, and spend 859.6 billion Drams. The deficit is projected at 183 billion Drams and the GDP at 3.214 trillion Drams. Armenia’s state debt is expected to hit $3.6 billion, economic growth is projected at 1.2%. The deficit to GDP ration is projected at 6%, down from 7.5% for 2009. -0-