Armenian government revises upward its 2016 draft budget

The Armenian government on Thursday amended its 2016 draft budget.

YEREVAN, December 4. /ARKA/. The Armenian government on Thursday amended its 2016 draft budget. Finance minister Gagik Khachatryan said the budget was revised to provide financing for about 60 proposals, made by the MPs after a series of discussions. He said this in view the government suggests that next year's revenues be increased by 15 billion drams and the spending by 14.3 billion  drams.

According to him, the additional spending is to be provided for financing social,  cultural and scientific projects worth about 9.4 billion drams; economic projects worth about 2.7 billion drams and another 2.2 billion drams will be channeled into other projects.

He said also the exchange rate of US dollar in the draft budget is 473.4 drams. The exchange rate of  euro is 520.83 drams.

"As a result of these changes the spending increases to 1 trillion and 377 billion drams (the ratio of spending to GDP is 25.3%) and revenues increase to 1 trillion and 186.3 trillion drams  (the ratio of revenue to GDP is 21.8%). The resulting deficit is 197 billion drams  (the ratio of deficit to GDP is  3.2%)," said Khachatryan.

According to him,  some 1 trillion and 129 billion drams of revenues are to be collected as taxes and dues. The 2016 draft budget projects a 2.2% GDP growth and 4% (± 1.5%) inflation. The projected  budget deficit is 3 5% of GDP.

As regards Armenia's public debt, at the end of 2016 it is expected to grow to  $5.569 billion. Of that amount 86.6% will be the government’s external debt. ($ 1 - 484.59 drams). -0-