Although, under the 2010 draft budget, the defense expenses constitute 3.5% of the GDP, which is the case this year, in absolute terms, next year’s defense budget is smaller, which is the result of a smaller GDP forecast for next year, RA Deputy Minister of Finance Pavel Safaryan told NEWS.am.

The 2009 defense budget is 131bn AMD, whereas the 2010 budget is 112bn AMD – 20% less. Safaryan pointed out that the 2010 defense budget may yet be revised upwards. “We are not pleased with this step and must reduce the difference between the 2009 and 2010 defense budgets,” Safaryan said.

RA Minister of Finance Tigran Davtyan said that only capital expenses will be reduced, with current defense and education expenses to remain unchanged.