Armenia’s 2018 budget to be directed for ensuring progressive growth of capital expenditures
YEREVAN, OCTOBER 17, ARMENPRESS. For the first time the budget policy vector will be directed not for the implementation of social expenditures, but for the capital expenditures, the development of infrastructures and capital capacities, Khosrov Harutyunyan – chairman of the parliamentary standing committee on economic affairs, told reporters speaking about Armenia’s 2018 budget draft, reports Armenpress.
“For the first time it is clearly stated in the budget policy that it is necessary to ensure progressive growth of capital expenditures against social protection expenditures. We need to achieve a guaranteed and constant growth of budget revenues in order to have impressive development and increase of social expenses, and this is possible by the volumes and rates of capital expenditures and investments”, Khosrov Harutyunyan said.
He said this policy will continue for another 1-2 years, and the budget capacities will be used for increasing Armenia’s economic potential and constantly guaranteeing budget revenues.
According to him, the capital expenditures will relate to road reconstruction, energy infrastructures, water supply. “Those are the infrastructures necessary for any economic entity to effectively carry out its activity”, Khosrov Harutyunyan said.
He said in 2008 the situation was good in terms of social protection, but in 2009 when 14% decline in GDP was recorded, the revenues gradually decreased, but the social obligations didn’t reduce. Thus, the state borrowed a debt for conducting its policy, which, according to Khosrov Harutyunyan, is the most effective policy. “Now if we borrow a debt, it must be used for ensuring progressive growth of capital expenditures”, he said.
According to the 2018 state budget draft, the revenue part will amount to 1 trillion 307 billion AMD, the expenditure part – 1 trillion 464 billion AMD and the deficit – 157 billion AMD.