Yerevan /Mediamax/. Armenian government considers budget sequester inexpedient in conditions of the crisis, Minister of Finance Tigran Davtyan stated.

According to him, when the economy lives through a recession, reduction of expenses means one more blow. “We have made the correct step, renouncing sequester and preserving the level of social expenses”, Tigran Davtyan stated.

He informed that now the Ministry works on the state budget of 2010, which will be “modest but realistic”. “We intend to preserve the tendency of growth of social expenses next year, we possess the necessary financial means for that”, the Minister noted.

The expenditure part of the state budget for 2009 will be implemented practically by 95%, Tigran Davtyan stated. Deficit of the state budget following the results of the year will make 6.5% of GDP. In January-July, the deficit of the state budget made 4.7% of GDP.

The Minister noted that by 2010, the correlation of the deficit to GDP will make 5-5.5%, taking into account the tendency for return to the maximum allowed level of budget deficit.

On June 2, Armenian parliament approved amendments to the law on the “Budget system”, according to which the volume of the allowed deficit limit was raised from 5% to 7.5%.

Talking about the volume of Armenia’s state debt, Tigran Davtyan noted that it is “controllable”. Ministry of Finance has elaborated the schedule of state debt repayment for up to the year of 2025.