To secure economic stability in Armenia, 2012 budget deficit will be cut by 3%, Armenian Prime Minister said.

“We focus on the problem of internal and external debt burden to manage the budget debt and to prevent it from hindering our sustainable development,” Tigran Sargsyan stressed when presenting 2012 draft state budget.

According to the Prime Minister, 2012 envisages improvement of tax ratio/GDP against AMD 101 bln of 2011. In this context, Mr. Sargsyan stressed the importance of the aforesaid to withstand the existing challenges in 2012.

With the purpose of income redistribution in 2012, Armenian government plans to increase social expenditures with 100.000 families to get social security benefits of 10 %, over 500.000 retirees to get 20 % increase in pension rate.