Armenian parliament begins debating 2016 draft budget
The Armenian parliament began today debates on 2016 draft budget, approved by the government on October 1.
YEREVAN, November 16. /ARKA/. The Armenian parliament began today debates on 2016 draft budget, approved by the government on October 1. It calls for 1 trillion and 373.7 billion drams in revenues and 1 trillion and 183 billion drams in spending. The projected deficit is 197 billion drams. Some 95.4% of the revenues are to be collected as taxes and duties, 2.6% as official grants and 2% as other income respectively. The draft budget projects a 2.2% GDP growth, 12-month inflation at 4% (± 1.5%) and a budget deficit at 3.5% of GDP.According to finance minister Gagik Khachatryan, the 2016 draft budget was calculated on the basis of a USD worth 483.02 drams. He said the country’s public debt at the end of 2016 is expected to amount to $5.569 billion, of which 86.6% will be the external debt.
Khachatryan said also 96% or 1 trillion and 244.4 billion drams of the spending are projected as current expenses, and another 129.3 billion drams as non-financial asset spending. He added that next year's spending is 68.1 billion drams higher than this year's one.
He said the government would like to have a more ambitious budget for next year, however, although revenue collection rate over the last 8 years almost doubled, the financial and economic forecasts in the state budget will not allow it to set and resolve ambitions plans.
"The current situation in the country, the difficult international economic situation, the reduction of money transfers to Armenia and a drop in people’s income do not allow us to expect a higher level of tax collection. This is the reason for such a conservative, but at the same while realistic draft budget,’ Khachatryan said.
According to the minister, 47.3% of the spending will be allocated to education, health, social protection, culture and sport. Another 20.8% will be channeled into defense, national security and preservation of public order and correction facilities.
Approximately 10.6% will be released to economy, 7.2% will be used to repay Armenia's debts, 3.5% will go the communities as budget subsidies, 6.7% are earmarked for the maintenance of public agencies, 1% is meant for science and 0.6 % will be used to form the government reserve fund.
He said the projected deficit (197 billion drams or 3.5% of GDP) will be financed through internal (70.1 billion drams) and external (120.6 billion drams) sources. The government will provide also a 36 billion government loan to the government of Nagorno-Karabakh Republic. ($ 1 - 481.76 drams). -0-