Government expects 2016 budget deficit to be 5.9-6 percent

YEREVAN, October 4. /ARKA/. Armenia’s 2016 budget deficit will make about 5.9-6% of GDP, finance minister Vardan Aramyan told a news conference today. According to him, over the past two years the government has been pursuing the so-called counter-cyclical fiscal policy, which resulted in the increased budget deficit which was necessary to raise investments for the economy and compensate for the drop in foreign exchange receipts.

“As a result the state budget deficit in 2015 amounted to 4.8% of GDP and in 2016, we expect it to be 5.9-6%”, – said Aramyan.

He said to finance the budget deficit the government plans to collect 70 billion drams from internal sources, of which 40 billion drams as government bonds and another 5 billion drams will be returned as earlier provided loans.

According to the minister, the remaining 80 billion drams will be financed from external sources. Earlier Aramyan said the budget deficit in 2017 will be brought down to 2.8% of GDP.

According to state budget for 2016, the government’s spending is 1 trillion 377 billion drams. It also plans to collect 1 trillion. 186.3 billion drams in revenue.  ($1 – 474.34 drams). –0

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