Minister: Armenian economy unable to absorb 1.5 trillion drams

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YEREVAN, April 29. /ARKA/. Armenia’s Finance Minister Atom Janjughazyan downplayed today opposition lawmakers’ arguments that the government should increase the financial assistance to economic entities and the population to offset the consequences of the coronavirus shock.

Speaking in parliament, the minister said the Armenian economy is not capable of absorbing 1.5 trillion drams and that was why the government-designed incentive programs are worth 150 billion drams.

“We can design many programs, but it is necessary to take into account the possibilities of the Armenian economy, which is not able to absorb such a volume of funds. The programs designed by the government are meant to support long-term development,” said Janjughazyan.

According to him, about 80 billion drams of that amount are earmarked to stimulate the economy, including through financing the deficit, and the rest will be spent on social and other projects.

The minister recalled that there have always been problems with the budget execution , and therefore the government expects that 150 billion drams are sufficient, otherwise the approaches will be reviewed.

“If, for example, in March we had offered the economy a package of 80 billion drams, it would had absorbed no more than 25 billion drams,” said the minister.

The Armenian government, in general, approved 14 programs to counteract the economic consequences of coronavirus. Of these, six are designed to support agriculture, tourism, SMEs, microbusiness and other industries and eight to show support to various groups of the population. ($1 – 479.58 dram) .

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