Processes in Russia give little cause of optimism, committee chairman says
Gagik Minasyan, chairman of a parliament committee on budget and financial issues from the ruling Republican Party of Armenia, told a news conference today that processes in the Eurasian Economic Union, particularly, in Russia, give little cause for optimism.
He, in particular, cited IMF and World Bank forecasts of economic growth in Russia for 2016 - 0.2% and 0.7% respectively, saying theese are the realities that Armenian government has to take into account in its projections.
He said it is important to realize that the devaluation of the Russian ruble has affected the purchasing power of Russians which in turn has brought about problems for Armenian exporters, which further inhibits the growth of the Armenian economy.
The draft 2016 budget, approved by the Armenian government on October 1, projects a 2.2% GDP growth, a 4% GDP deflator index, 12-month inflation at 4% (± 1.5%) and a budget deficit of 3.5% of GDP. The budget calls also for 1.373 trillion drams in revenues and 1.183 trillion drams in spending. The projected deficit is 197 billion drams.
According to the National Statistical Service, revenue collection rate in the first six months of 2015 grew by 0.4% year-on-year to 553.8 billion drams, while spending surged by 16% to 605.9 billion drams. The budget deficit was 52 billion drams. ($1 – 472.37 drams). -0-