December 29, ARKA

Armenia's 2009 state budget will not be revised, RA Prime Minister Tigran Sargsyan said.

"We are strong enough to be able to execute all expenditures. As to budget receipts, we will make use of these reserves in 10 years," he said, adding those funds belong to the RA Government.

The premier pointed out intense negotiations with IMF and WB over increasing investments in Armenia. "The World Bank initially said it was going to pay US$420mln, but during and after the Washington talks, we asked for a sharp increase in credit funds," the prime minister said. "This is a three-year program and we have asked additional $250mln for extending loans to small and medium-sized businesses," he continued.

Sargsyan emphasized the role of Armenia's cooperation with the Asian Development Bank, pointing out large-scale investments, as well as road reconstruction activities and regional development programs. Among the short -term objective is construction of a road linking Armenia and Batumi, which, according to the prime minister, will ensure a considerable GDP growth both in Armenia and Georgia.

With negotiations with the Russian Federation and other partner states in full swing, the RA Government plans to implement new large-scale projects.This soundness speaks about the government's productive expenditure policy, the premier said, adding the wisest thing the government can do during a crisis is to invest in infrastructures. "Infrastructures are the vital constituent of an economic progress," he said.

The premier also stressed the importance of road construction programs for Armenia, underlining major problems with irrigation and drinking water supplies in regions. The prime minister said the government stands ready to keep implementing the projects set for 2009-2010.