Expert: "Armenia`s state budget cannot be focused on social sector, amid critical level of state debt"

 

"The interest payment of the external debt of Armenia is 90bln drams, which is about $200 million that could be spent on the implementation of many social projects," Bostanjyan said. 

 

It is anticipated that the budget 2016 will be replenished with 8.7bln drams, which is less than in 2015, he said.

 

In his worlds, it is the taxpayers that ensure fulfillment of the budget amid 34% poverty level in the country. Furthermore, the expert recalled that the draft budget 2016 does not provide for any increase 

in salaries or pensions. 

 

Under the draft budget 2016, expenditures will total 1 trillion 373.7 billion AMD, and revenues - 1 trillion 183 billion AMD, with the deficit being 197 bln AMD. Taxes and duties will make up 95.4% of the 

revenues, and official grants and other revenues will be 2.6% and 2% respectively.  The real GDP for 2016 is estimated at 2.2%, GDP deflator index - 4%, 12-month inflation - 4% (+1.5%), budget deficit 

- 3.5% of GDP.  

 

According to the National Statistical Service of Armenia, in Jan-Sept 2015 versus Jan-Sept 2014, the budget revenues of Armenia grew by 1.9% to 842.5 bln AMD, while the expenditures rose by 14.8% to 958 bln AMD. The budget deficit totaled 115.5 bln drams with a 16-fold year over year growth. State debt increased by 9% to $4.8bln, of which $4.1 bln was the external debt  (up 8%). The government's share 

in the state debt is about 90% (up 9% for 9 months of 2015).