In his interview with NEWS.am and the Chorrord Ishkhanutyun (Fourth Estate) newspaper, RA Minister of Finance Tigran Davtyan stated that Armenia’s 2010 state budget is “a realistic and stabilizing one.” In his turn, Bagrat Asatryan, the ex-chairman of the Central Bank of Armenia, designated it as “weak and false.” Minister Davtyan strongly disliked the designation and stated that he has “no wish to accept this designation. It is inappropriate language.”

Davtyan pointed out that the Government “have presented a budget within the limits of the possible. We are constantly saying that the government system be more economical. Considering these goals and the actual state of affairs, we have launched an austerity policy in the state government expenditures.”

As regard the 25% and 20% reduction in education and defense expenses respectively, Davtyan pointed out the structure of the fields. “One fact should be noted: capital expenses have been reduced, while current expenses, including expenses on wages, have remained unchanged.” So the reduced expenses, particularly the defense expenses, do not affect the army’s tasks at all.

The Minister disagrees with the opinion that administration expenses have remained unchanged. “They have been reduced by almost 5bn AMD,” Davtyan said, without specifying the percentage. Deputy Minister Pavel Safaryan pointed out that the administration expenses have been reduced by 3%.

As to whether the Government has succeeded in structural reforms – less dependence on private transfers and excessive construction volumes — in implementing its anti-crisis program, Davtyan said: “Structural reforms are not to rake place within months, they require years. Of importance is the work aimed at accomplishing the tasks.”