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The growth rates of the Armenian economy were higher than expected in the first seven months of 2015 thanks to good indices achieved in agriculture and industry, Chairman of the Central Bank of Armenia (CBA) Arthur Javadyan said today during debates of Armenia’s 2016 draft state budget in the parliament.

The increase in the economic activity index was about 4.1% from January to July compared with the same period of last year. “ The tax, budget and monetary policies aimed at ensuring macroeconomic stability in 2015 could create preconditions for economic growth and price stability in the medium term,” the CBA head said.

Commenting on CBA’s conclusion on the draft state budget for 2016, A. Javadyan said that the share of expenditures in GDP is expected to decline by 25.2% next year. “Besides, capital expenditure in the structure of spending will increase slighltly and make up 9.4% of the total expenditures. The state budget expenditures will increase by 68.1 billion drams,” Javadyan said, stressing that budget expenditures allocated for the social sphere will grow by 3.9% compared to 2015.

As the government press office reported earlier, the Armenian government approved the 2016 draft state budget of Armenia during a session on October 1. Budgetary revenues and expenditures are planned to make 1,183 billion drams and 1,373.7 billion drams respectively, with a deficit of 190.7 million drams. By the draft budget, real GDP growth is planned at 2.2%, deficit at 3.5%, while inflation is expected to average 4% plus/minus 1.5%.