YEREVAN, November 18, /ARKA/. Chairman of Armenia’s Central Bank, Arthur Javadian, said today the inflation in 2011 will be within the projected target of 4±1.5%, as he joined parliament discussions over next year draft budget. According to him, this will be achieved through a coordinated money-credit and fiscal policies.
Mr. Javadian described the outgoing year as ‘stable’ in terms of macroeconomic stability, saying that thanks to government’s anti-crisis measures the GDP expanded by 3.1% for the first eight months, as opposed to 18.4% dramatic decline in the same time span last year.
In his words, the government has created all conditions necessary for effective tax collection and cutting deficit budget. He said the volume of collected taxes in the first eight months was 24,9 billion Drams more than projected. If compared to the same time span of last year the growth was almost 21%, he said.
He said also the government has cut its spending that has resulted in decreased budget deficit that was 33.6% of the projected for the first eight months.
‘Alongside with the government policy designed to cut the budget gap the Central Bank has been toughening up money and credit requirements by raising the refinancing rate 2.25% in the first half of the year that entailed a 5.5% inflation cut for the 12 months,’ he said.
The government has projected to collect 850 billion Drams in revenues and spend 998.4 billion Drams. The projected deficit is 148.6 billion Drams, an equivalent of 3.9% of the GDP. Proceeds from taxes are expected to amount to 650 billion Drams.($1 – 361.38 Drams). -0-
