YEREVAN. – The main part of the state budget is the revenue portion, and there are some risky parts in the draft 2014 State Budget.

Ruling Republican Party of Armenia (RPA) MP Vahram Baghdasaryan stated the aforesaid at a press conference on Thursday.

“But, also, I have to say that according to some estimates, the budget [proposal] does provide revenue. 

“The risk [, however,] may be that the administration is significantly reduced in this year’s budget, whereas the SRC [i.e., the State Revenue Committee] seems to challenge the reduction of the administration,” Baghdasaryan said.

But the RPA MP noted that Armenia took a very important step with respect to increasing the wages of the public sector workers.  

“But there is a risk in increasing the salaries. In my view, there is an unanticipated inflation which is due to the increase in salaries. Is the private sector [likewise] prepared for this increase [in wages]?

“[The private sector, too,] will have to raise salaries. But will this not cause unemployment? The private sector ensures a part of our budget,” Vahram Baghdasaryan specifically noted.