Tax-budgetary opportunities are expected
The International Monetary Fund (IMF) mission headed by Mark Horton visited Yerevan on September 7-20 to discuss the third, final checks on the "Extended Financing" (EFF) and "Extended Crediting" programs.
After the visit, Horton announced that the discussions were effective and that the sides made progress in some policies and measures for the rest of 2011 and 2012. "The discussions will continue on the weekend during the annual assemblies of the IMF and the World Bank in Washington.
"The general macroeconomic conditions have improved. Thanks to the dynamics for restoring the agricultural field, as well as the branches of industry and services, the results of the economic growth will improve and will fall in line with the previous prediction of 4.6 percent economic growth.
In the case of less supportive external conditions, the prediction of economic growth has reduced to 4 percent in 2012 and the risks will reduce. The inflation has been notably measured due to the reduction of prices for food on a global scale and the restoration of agriculture. In August, the general inflation reached 4.8 percent (compared to the same period last year) and it is expected that it will remain restricted in the remainder of 2011 and in 2012," said Horton.
According to him, the program's executive continues to be sufficient. The tax-budgetary balance has continued to improve, and it is expected that the overall deficit will reduce-4 percent lower in 2011 instead of the 5 percent in 2010. With the purpose of ensuring the debt sustainability, it is expected that the deficit will continue to reduce in 2012. Nevertheless, the government expects to create tax-budgetary opportunities to support the growth of the private sector and reduce poverty by implementing a package for increasing income taxes. The package will be based on new legislative initiatives and the new efforts of the taxing administration.
"The Central Bank continues to show commitment to the floating exchange rate and the inflation regime, restricting the extra-budgetary interferences with cases of restricting the shifts. The Central Bank also continues to improve the tools for looking over the risk in the banking system," said Mark Horton.
