fintax logo

+374 94 000 446

Armenian parliament adopted budget for 2019

Viewed 2322

post single img

The Armenian Parliament adopted the budget for 2019. 66 MPs voted for the document, 4 MPs voted against,  2 abstained. Two deputy speakers from the Republican Party, Eduard Sharmazanov and Arpine Hovhannisyan, as well as deputy chairman of the Republican Party of Armenia, head of the foreign affairs committee Armen Ashotyan, voted against the document. In general, the RPA faction voted for the document. The project was also supported by the Tsarukyan faction, Yelk, and ARF  Dashnaktsutyun parties. 

To note, the budget of 2019 provides for GDP growth of 4.9%, instead  of 4.5% laid down in the approved state budget for the 2018, the  consolidated budget for the next year in terms of revenues is  estimated at 1,533.7 billion drams (without revenues from  intergovernmental transfers ) instead of 1,343.5 billion drams in  2018, in terms of expenditures - 1,685.3 billion drams (without  revenues from intergovernmental transfers), against 1,500.5 billion  drams in the current year, the deficit will be about 151.6 billion  drams or 2.2% of GDP, against 156.9 billion drams pledged for 2018.  The sources of financing the budget deficit will be 54.2 billion drams - domestic sources, and 97.5 billion drams - external.  Community budgets for 2019 are estimated at 138.9 billion drams of revenue (including official grants from the state budget), and expenditures will total 138.9 billion drams. This year, a figure of  130.1 billion drams was laid. 12-month inflation is expected at 4%  with an acceptable limit of fluctuations of  1.5%. In 2019,  capital spending from the current 2.3% of GDP will rise to 3%. State treasury revenues will amount to 1 trillion 491 billion drams  (1.308.3 billion drams in the current year), of which tax revenues will amount to 1 trillion 399.2 billion drams (in 2018, 1,248.5  billion drams) expenses - 1 trillion 642.2 billion drams (against the current 1,465.2 billion drams).  44% of the state budget will be spent on social and cultural programs, 24% of all state budget funds will be spent on solving problems related to maintaining public order, security, and defense, and 12.3% will be invested in the real sector of the economy. I3.2% of all expenditures will be allocated to local governments' budgets and 5.8% - to government departments. In  2019, the government will spend 10% of the total expenditures on servicing the public debt. The ratio of public debt to GDP will be  50.4%.


Recent views