YEREVAN (Combined Sources)–Armenia’s National Assembly approved the 1999 budget on Tuesday with a deficit of 5.1 percent of gross domestic product.
The document passed with 122 votes in favor–22 against and three abstentions. Revenues were set at 191.692 billion drams ($367 million)–or 17.4 percent of GDP–and spending at 248.310 billion drams–22.6 percent of GDP.
A deficit of 56.618 billion drams is to be covered by domestic resources–income from treasury bill issues and credits from international financial organizations and donor countries.
The budget envisages year-on-year inflation of 9.9 percent up from 1-2 percent forecast for 1998.
Real GDP growth was set at 4-6 percent–compared with six percent in 1998.
Defense spending is increased to 40 billion drams (21.7 percent of total spending) from 33.3 billion drams in 1998.
Azerbaijan–which adopted its 1999 budget last Thursday–increased defense spending by 21.6 percent compared with this year.