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Expert: Armenia Should Shift From Social-Oriented Budgets To Investm

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  • Expert: Armenia Should Shift From Social-Oriented Budgets To Investm

    EXPERT: ARMENIA SHOULD SHIFT FROM SOCIAL-ORIENTED BUDGETS TO INVESTMENT BUDGET

    /ARKA/
    NOVEMBER 1, 2011
    YEREVAN

    YEREVAN, October 31. /ARKA/. Vazgen Safaryan, head of the Union of
    Armenia's Domestic Manufacturers, thinks Armenia should shift from
    social-oriented budgets to an investment budget.

    He told journalists on Monday that the 2012 government budget is
    socially oriented.

    He said that the funds intended for social area are planned to be
    enlarged by AMD 35 billion from AMD 271 billion in 2011 to AMD 207
    billion in 2012.

    This will make it possible to increase the pension size by AMD 3,000
    and benefit size by AMD 2,700.

    "But I have repeatedly said and will say again that we should shift
    from survival, consumer and social budgets to investment budgets,"
    Safaryan said. "This will ensure economic development, particularly
    industrial development."

    Armenia's industry is stably growing, he said. It grew about nine
    percent over nine months of this year.

    Speaking about other sectors, the expert said that agriculture
    contains weather-caused risks, and the role of construction has
    been overestimated - the share of construction in the most developed
    countries doesn't exceed 5% of GDP, while in Armenia it reached 25%.

    Pointing out that this was due to outside factors, he added that
    construction here was carried out at the account of the capital
    brought from the outside.

    "Construction volumes no longer can be large in the country, since
    construction of residential houses is already oversaturated here,
    and construction can be carried out for industry and tourism areas,"
    Safaryan said stressing the necessity to develop industry.

    According to official statistical reports, construction in Armenia
    faced 25.2% decline in September 2011, compared with the same month
    a year before.

    However, construction here grew 19.4% in September, compared with
    the previous month, to AMD 49.1 billion.

    Agriculture sector's output in current prices amounted to AMD 169
    billion in September 2011 after growing 18.6%, compared with the
    previous year's September.

    On September 29, Armenian government approved the 2012 draft budget.

    The budget revenue is projected at AMD 910 billion, spending AMD
    1042.5 billion and deficit 132.5 billion here.

    In this draft budget, revenue is planned to be enlarged by 6.8%
    in 2012, compared with 2011 (AMD 852.4 billion) and spending is
    projected to grow by about AMD 41.5 billion. ($1 - AMD 378.58)..

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