ArmInfo. In 2018, the profitable part of the state budget of Armenia is planned at the level of 1.307.3 trillion drams, the expenditure part - 1.464.2 trillion drams, the budget deficit will make 156.9 billion drams. The RA Minister of Finance Vardan Aramyan stated this at the plenary session of the RA National Assembly on November 15 presenting the bill "On the State Budget of 2018".
As noted by the country's chief financier, one of the main tasks of the government next year will be stabilization of the share of public debt in the country's GDP. According to the draft budget for 2018, the revenues of the state budget will amount to tax revenues of 1.247.9 billion drams, of which about 70 billion drams will be provided by the effect of economic growth, which is planned at 3.2%. Another 30 billion drams will come from improving the quality of administration. Adjusted taxes / GDP in 2018 will be 21.3% instead of 20.9% by the end of 2017 and actual 20.3% last year. Next year, the state treasury will receive less than 395 billion drams due to payments to businesses through VAT, income tax and profit tax. Nevertheless, according to the results of improving the tax administration, it is expected to collect taxes in the amount of 30.8 billion drams.
In 2018, international structures and foreign countries are expected to attract official grants of 35.6 billion drams. In 2017, the expected figure was 30.9 billion drams, and in 2016 their actual volume was 28.4 billion drams. Other budget revenues will make up 23.8 billion drams next year, in 2017 they are expected at 44.1 billion drams, and in 2016 they made 30.6 billion drams.
The deficit / GDP will be 2.7%, instead of the forecasted 3.2% by the end of this year. and 5.5% in the end of 2016 - 156.9 billion drams, 150.1 billion and 284.7 billion drams, respectively. Of these, AMD 77.1 billion will be financed from domestic resources, including an increase in domestic debt. Despite the high cost of domestic debt, Vardan Aramyan explained, the funds will go into the pockets of Armenian residents, turning into a multiplier effect in the country's economy. 79.8 billion drams or $ 166 million will be attracted from outside. In addition, as the country's chief financier pointed out, the build-up of domestic debt does not pose a threat to the republic's financial system.
Despite ambitious investment statements, in 2018 the investment-to-GDP ratio promises to just return to the indicators of 2016 - 18.4% of GDP, instead of 18.2% expected by the end of this year. As explained by the Minister of Finance, investments are traditionally not immediately transformed into economic growth of the country. There are also such, such as investments in the construction of apartment buildings, find a positive response to the GDP of the country this year. In addition, the investor traditionally expects specific actions and improvements in the investment climate, and then only reacts. Prior to this, the local government should react to the positive steps of the government - local investors. "Various studies show that a positive impulse and an adequate reaction from the local investor is transformed into a result within 1.5-2 years, and positive changes on the part of the external investor require a longer period of time," the minister explained.
Note that the nominal GDP of Armenia in 2018, according to the draft budget for the next year, will grow by 441 billion - from 5,409.1 billion expected by the end of 2017 to 5,850.7 billion drams pledged in the project. The economic growth in 2018 is planned at 4.5% or $ 11.948.9 million. The forecasts of economic growth for the next year are largely due to the outlined positive dynamics this year, as a result of which the Ministry of Finance raised the forecasts for economic growth in 2017 from the planned 3, 2% to 4.3%. In the matter of ensuring economic growth, one of the locomotives is promised by industry and the services sector. So, 4.5% of GDP will be provided at the expense of industry 1.1%, agriculture - 0.6%, services - 2.2%, net indirect taxes - 0.4%. 12-month inflation by the end of 2018 will be 4%, instead of expected in 2017, 2.4% and actual -1.1% at the end of 2016. Exports will reach 37.4% of GDP, against the projected in 2017 37% and 33.1% in 2016. The consolidated budget of Armenia for 2018 in terms of revenues will make 1.307.3 billion drams (without the receipt of interbudgetary transfers). The deficit / GDP will be 2.7%, instead of the forecasted 3.2% by the end of this year. and 5.5% in the end of 2016 - 156.9 billion drams, 150.1 billion and 284.7 billion drams, respectively. According to the spending line, it is expected to be 1.464.2 billion drams (1.360.1 billion in 2017 and 1.420.6 billion in 2016), of which capital expenditures will make up 172.4 billion drams instead of last year's 98.6 billion drams and 160 billion in 2016 year. Capital expenditures will be mainly carried out at the expense of external.