The 2011 state budget provides for steady economic growth, Vardan Aivazyan, the Chairman of the Standing Committee on Economic Affairs, RA Parliament, member of the Republican Party of Armenia (RPA), told journalists on Nov. 4. A number of factors are evidence thereof, he said.

Aivazyan is sure that Armenia will even exceed the GDP growth targets next year.

“A 4.6% GDP growth, a tax revenues/GDP ratio of 17.02 (from 17.01 up to 17.02), 3.4% budget deficit against 6.8% in 2010 and 7.3% in 2009, and so on. A number of industries are being restored – construction, tourism and services sector. More considerable economic growth could be expected but for the agricultural sector,” Aivazyan said. On the other hand, he forecasts problems.

“A jump is prices is the gravest problem. The Government has highlighted the problem and is elaborating mechanisms to resolve it,” Aivazyan said. A rise in prices within 5.7% is expected next year. Numerous mechanisms are available, but the most effective need to be selected.

“The Commission for Protection of Economic Competition and the Central Bank of Armenia have their own levers. Amendments to the relevant laws are under consideration as well,” Aivazyan said. He mentioned he is drafting new tax bills in cooperation with a number of experts.

According to him, Armenia’s tax laws currently in effect are “too complicated.” They cause new problems, which, in turn, require amendments making tax laws even more complicated.