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The draft state budget for 2016 reflects the existing political, social and economic situation in Armenia, the directions of the socioeconomic policy, and development tendencies in the near future, Speaker of National Assembly Galust Sahakyan said today during parliamentary debates of the draft law on the state budget of Armenia for 2016.

In his words, the 2016 state budget is based on the priorities of socioeconomic development and the feasibility of their realization. In particular, real GDP growth is planned at 2.2%, while industry is expected to grow by 3.7%, agriculture by 4%, services by 1.3%, and the construction sector by 1%.  

Galust Sahakyan said macroeconomic forecasts for 2016 have been made realistically and are aimed at creating a respective atmosphere to ensure real prerequisites for further economic growth.

The speaker appreciated this approach of the Armenian government that took into account the objective realities and difficulties that exist at the moment and are expected next year.

Sahakyan pointed out the importance of programme budgeting and said that format helps clearly understand the goals of state expenditures and the expected results.

The speaker also said under the draft state budget for 2016, almost half of the expenditures are allocated for the social and cultural sphere, that is, the problems of the social sphere are constantly at the center of attention of the Armenian authorities and everything is done for their efficient solution.

“We do not believe that the efforts made are sufficient for a sharp improvement of social conditions of the population. It is a long process that is conditioned by financial possibilities of the country. But it cannot be denied that the authorities are willing to discuss and solve a wider range of social problems,” the speaker noted.

In his words, “the state budget for 2016 is a budget of opportunities”.

“We stress the importance of the circumstance that like in the previous years, this year, too, the Armenian government takes efficient measures to improve the business environment. In this context I would like to draw attention of the government to the creation of opportunities for development of small and medium businesses. It is very important because SMEs worldwide create about 90% of jobs and 70% of gross profit. In this sense SMEs of Armenia have much potential for development, and the main problems are related to the creation of relevant preconditions,” Sahakyan said.

He added that support for the sector should be targeted and justified.

According to G. Sahakyan, the difficult geopolitical conditions and developments in the global economy have both direct and indirect impacts on the Armenian economy. “In this situation, it is important to ensure a reasonable use of state resources, which shall also be reflected in the state budget,” he said.