Tigran Davtyan: Budget sequestration inappropriate in crisisAugust 28, 2009 - 17:33 AMT PanARMENIAN.Net - In a crisis, the budget sequestration is impractical, because if the economy is in a recession, it is important to increase spending and pursue expansive policies, Tigran Davtyan ,Armenia's minister of finance told a press conference in Yerevan today. According to him, since the state is a serious player in the economy, its task in these circumstances is to attract additional resources and increase costs, like all the world countries do, if feasible. "Despite the decline in incomes all over the world, governments try not to reduce costs in order to stimulate the economy. Reduced costs will mean a further negative impact on the GDP of the country," Mr. Davtyan explained. In this context, in case of sequestration and reduction of income, a decline in GDP for the past seven months in Armenia would surpass 18.5 per cent. As Tigran Davtyan stressed, the government of Armenia has reduced the income of the budget and increased its expenditure, and it was decided to compensate the gap at the expense of borrowed funds. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Concept to complete Yerevan Cascade discussed at city hall A conceptual proposal to complete the Cascade complex in downtown Yerevan has been presented by Jean-Michel Wilmotte. Pashinyan visits flood-hit region Armenian Prime Minister Nikol Pashinyan on Saturday, June 8 visited the disaster area in the Lori province. €3.5 mln EU grant to support justice reforms in Armenia The European Union has paid €3.5 mln grant to Armenia within a €11mln program on Support to Justice Reforms. Yerevan reacts to Baku’s proposal to see Minsk Group abolition Alen Simonyan has declared that Armenia is taking steps aimed at concluding a peace treaty with Azerbaijan. |