RA Government’s policy could be called correct from theoretic viewpoint, RA Prime Minister Tigran Sargsyan said at a Governmental meeting. In two-digit economic growth circumstances restraining policy should be applied for economy not to get overheated.
According to RA Prime minister, expansive policy should be implemented in economic growth circumstances, which spells increase in public expenditure.
In this context, the Prime Minister added that similar policy is being applied by CBA after return to floating exchange rate policy, in consequence of which CBA had to raise refinancing rate by 1%.
As for budget sequester possibilities, Sargsyan noted that international experts agree expenditures level should be preserved.
The Government has already received Parliamentary approval for 7,5% deficit in GDP structure and has redistributed budget expenditures, having received additional 2009-2010 financing of USD 300 million from WB, USD 60 million from WB and USD 80 million from ABD. “Expansive policy will be continued into 2010 to enable economy growth stimulation,” Sargsyan said.
