Thursday, November 30 2017 15:17
Naira Badalian

2018 budget draft adjustments: Armenia is going to increase expenditure items of the budget

2018 budget draft adjustments: Armenia is going to increase expenditure   items of the budget

ArmInfo. Expenses of the state  treasury of Armenia in 2018 as a result of discussions in the  standing commissions of the National Assembly increased by 15 billion  drams.  This November 30, presenting an adjusted version of the draft  budget for the next year, during the government meeting, Armenian  Minister of Finance Vardan Aramyan

According to the Minister, the budget expenditures from the  previously planned 1, 464.2 billion drams (1.360.1 billion in 2017  and 1.420.6 billion in 2016) will grow to 1, 465.2 billion drams. As  Aramyan explained, according to the RA Law on Budget System, a  financial document for the next year is submitted to the country's  parliament, where the expenses are calculated on the basis of the  exchange rate as of September 1. Later, changes in the exchange rate  of the currency require certain adjustments. In this case, as the  head of the Ministry of Finance pointed out, changes in the exchange  rate of almost 5 drams led to an increase in revenues by 1.5 billion  drams.

In addition, the expenditure part of the draft budget grew by 4  billion drams, which was due to the increase in financing of the  healthcare system of Armenia - from 72.6 billion drams, planned by  the previous text of the document, to 76.6 billion drams.  The State  Water Committee of Armenia also expects an increase in financing in  the amount of 1 billion 289 million drams to cover the costs  associated with the rise in price of the water tariff in the amount  of 11.4 drams per cubic meter (including VAT).  Meanwhile, on  November 22, on the day of approval of Veolia Djur's application for  increasing the water tariff, the head of the water supply and  drainage department of the State Water Management Committee of  Armenia Armen Sergoyan said that the difference of 11.4 drams will be  compensated by rent of a single operator to the state budget of the  country. A few days ago, ArmInfo was told by the Committee that a  document was being prepared under which the difference would be  subsidized from the reserve fund of the Government and would not  become an additional burden for the state budget of the country. "We  will try to find a more targeted solution to this issue in 2019,"  Aramyan said.

Pursuant to the requirements of the new Constitution, the  expenditures of the Government Office will be allocated 1.7 billion  drams more than the previous version of the draft budget. At the same  time, the expenditures of the government's reserve fund will be  increased by 3.9 billion drams from 21.1 billion drams earlier laid  down to 25 billion drams, which is due to planned activities and,  possibly, unplanned expenses for them. About 1bln AMD are planned to  be allocated for ensuring border security and implementation of  Armenia's obligations in the framework of international agreements.

According to the head of the Ministry of Finance, on the part of  parliamentarians, proposals were made to increase expenditure items  in a number of spheres and directions, or at least to maintain the  indicators of 2017. The Ministry of Finance plans to consider the  proposals within the framework of the medium-term expenditure program  for 2018-2021. According to some proposals, despite their relevance,  the Ministry of Finance was forced to pass a negative conclusion, as  Vardan Aramyan noted that as a result, Armenia could go beyond the  threshold set by the country's fiscal legislation.

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  the year 2018 in terms of revenues, according to the results of  parliamentary adjustments, will make 1.308.2bln AMD, instead of  1.307.3bln drams announced earlier (without receipt of interbudgetary  transfers). The deficit / GDP instead of 156.8bln AMD in the previous  text of the document will make 156.9bln AMD. Capital expenditures  will make 158.7bln AMD, instead of 172.4bln AMD (160bn in 2016)  earlier planned, current expenses from 1.391.8bln AMD will grow to  1.306.5bln AMD. By the end of 2018, the national debt, with $ 6.8bln  of AMD expected by the end of this year, will grow to over $ 7.2  billion and make up 60% of GDP.

POST A COMMENT
Input digits     


News
Deputy PM promises to consider  MP`s proposal to reduce sugar  consumption in ArmeniaDeputy PM promises to consider  MP`s proposal to reduce sugar  consumption in Armenia
20 million drams for Artsakh students, 10 million drams for a kindergarten for Artsakh children: IDBank20 million drams for Artsakh students, 10 million drams for a kindergarten for Artsakh children: IDBank
David Ananyan on Crossroads of Peace project David Ananyan on Crossroads of Peace project 
Inspection Authority: Another 11 organizations  get licenses to  export flowers to RussiaInspection Authority: Another 11 organizations  get licenses to  export flowers to Russia
Yerevan to host Discover Armenia festival Yerevan to host Discover Armenia festival 
Landslide blocks traffic on section of Mtskheta-Stepantsminda-Lars  roadLandslide blocks traffic on section of Mtskheta-Stepantsminda-Lars  road
New goods traceability rules to take effect in Armenia New goods traceability rules to take effect in Armenia 
The Power of One Dram Turns FiveThe Power of One Dram Turns Five
Martin Galstyan: Foreign partners reaction to  peace agreement  between Armenia, Azerbaijan in Washington is positiveMartin Galstyan: Foreign partners reaction to  peace agreement  between Armenia, Azerbaijan in Washington is positive
AraratBank and “4090 Charity” Foundation: 2309 Meters Above the EarthAraratBank and “4090 Charity” Foundation: 2309 Meters Above the Earth
Martin Galstyan:  Armenia`s economic growth is projected to be  4.9-5.3%  in 2025Martin Galstyan:  Armenia`s economic growth is projected to be  4.9-5.3%  in 2025
 ENA CJSC issues statement regarding queues for connection to   distribution network ENA CJSC issues statement regarding queues for connection to   distribution network
Pashinyan discusses  fiscal and expenditure framework of  Medium-Term  Expenditure Program (MTEP) for 2026-2028Pashinyan discusses  fiscal and expenditure framework of  Medium-Term  Expenditure Program (MTEP) for 2026-2028
idcoins and profitable mortgage loans. IDBank at TOON EXPO YEREVAN 2025idcoins and profitable mortgage loans. IDBank at TOON EXPO YEREVAN 2025
 SRC head  thanks Iranian ambassador for effective cooperation in  tax  and customs spheres SRC head  thanks Iranian ambassador for effective cooperation in  tax  and customs spheres
Yerevan Municipality offers tax benefits for incomplete projects to  developersYerevan Municipality offers tax benefits for incomplete projects to  developers
 RA MFA responds to report on `Pakistan-Armenia deal`  RA MFA responds to report on `Pakistan-Armenia deal` 
Pakistan to recognize Armenia as UN member state, Armenia to give  green light to Pakistan`s accession to EAEUPakistan to recognize Armenia as UN member state, Armenia to give  green light to Pakistan`s accession to EAEU
Record number of tourists in Armenia in May-Aug 2025Record number of tourists in Armenia in May-Aug 2025
Regulator fines companies for unreasonably high prices for servicing  cash registers Regulator fines companies for unreasonably high prices for servicing  cash registers 
Ardshinbank Participated in Toon Expo 2025 Real Estate ExhibitionArdshinbank Participated in Toon Expo 2025 Real Estate Exhibition
Armenia`s debt to World Bank increasing Armenia`s debt to World Bank increasing 
Russian-Armenian businessman Samvel Karapetyan promises large foreign  investments for Armenia Russian-Armenian businessman Samvel Karapetyan promises large foreign  investments for Armenia 
Armenia`s electric energy output shows 6.5% y/y declineArmenia`s electric energy output shows 6.5% y/y decline
Armenian metallurgy industry`s output down Armenian metallurgy industry`s output down 
Further decline in Armenia;s industry Further decline in Armenia;s industry 
Armenia paid $5bln for mere talks about Armenia drawing closer to EUArmenia paid $5bln for mere talks about Armenia drawing closer to EU
Trump Road to facilitate Armenia-Russian communication as well - RF  vice-premier  Trump Road to facilitate Armenia-Russian communication as well - RF  vice-premier  
Share of Armenia`s TOP-5 trade partners 65% of trade turnover Share of Armenia`s TOP-5 trade partners 65% of trade turnover 
Unblocking South Caucasus puzzle consisting of numerous pieces -  Alexey Overchuk Unblocking South Caucasus puzzle consisting of numerous pieces -  Alexey Overchuk 
Armenia, Japan discuss economic cooperation prospects Armenia, Japan discuss economic cooperation prospects 
Italian Ambassador appreciates Armenia`s efforts to create a  favorable environment for foreign investment Italian Ambassador appreciates Armenia`s efforts to create a  favorable environment for foreign investment 
Instant idcoins ahead of the Armenia-Portugal football match: Idram&IDBankInstant idcoins ahead of the Armenia-Portugal football match: Idram&IDBank
Question for Central Bank: what is the cause of crisis in Armenian  payment market?Question for Central Bank: what is the cause of crisis in Armenian  payment market?
Armenia`s foreign trade turnover 42% down Armenia`s foreign trade turnover 42% down 
imID-provided Mobile ID system to be available to Team subscribersimID-provided Mobile ID system to be available to Team subscribers
Economic activity 7.1% up in Armenia in Jan-July 2025Economic activity 7.1% up in Armenia in Jan-July 2025
While speaking of peace, Armenian premier unable to esnure passage of  Armenian trucks through Georgian checkpoints - RPAWhile speaking of peace, Armenian premier unable to esnure passage of  Armenian trucks through Georgian checkpoints - RPA
Armenia`s State Revenue Committee reveals sale counterfeit vodkaArmenia`s State Revenue Committee reveals sale counterfeit vodka
Armenian premier visits Expo 2025 OsakaArmenian premier visits Expo 2025 Osaka
Russian diplomats get acquainted with Russia-sponsored UNDP projects  in Armenian Syunik Russian diplomats get acquainted with Russia-sponsored UNDP projects  in Armenian Syunik 
Armenia  to implement unified state information platform for  employmentArmenia  to implement unified state information platform for  employment
Saving time and money: Buying and selling cars in Armenia has gone  digitalSaving time and money: Buying and selling cars in Armenia has gone  digital
Converse Bank to improve MSME competitiveness within   EU4Business-EBRD programConverse Bank to improve MSME competitiveness within   EU4Business-EBRD program
Russia expecting twofold reduction in trade with Armenia by year`s  end Russia expecting twofold reduction in trade with Armenia by year`s  end 
1% idcoin within the framework of TOON EXPO: Idram&IDBank1% idcoin within the framework of TOON EXPO: Idram&IDBank
Yerevan-Kapan-Yerevan flights temporary suspended Yerevan-Kapan-Yerevan flights temporary suspended 
EBRD to provide EUR 46mln for establishment of Yerevan Customs and  Logistic Center EBRD to provide EUR 46mln for establishment of Yerevan Customs and  Logistic Center 
Armenian NPP to get AMD 1.035mln loan carried over from 2024 Armenian NPP to get AMD 1.035mln loan carried over from 2024 
Rise in food, services prices causes 3.6% y/y inflation in Armenia Rise in food, services prices causes 3.6% y/y inflation in Armenia 
AraratBank Joins ArcaPay with 0% Money Transfer CommissionAraratBank Joins ArcaPay with 0% Money Transfer Commission
Real estate to be checked for debts Real estate to be checked for debts 
Ardshinbank Launches Ardshinbank Launches "How to Become a Millionaire" Raffle
DigiTec 2025: over 40,000 guests, 100 global technology leaders, 250  companies expected to participate DigiTec 2025: over 40,000 guests, 100 global technology leaders, 250  companies expected to participate 
GPS modules connected to servers of Subsoil Inspectorate to be  installed on quarry equipment and dump trucks in ArmeniaGPS modules connected to servers of Subsoil Inspectorate to be  installed on quarry equipment and dump trucks in Armenia
Asian Infrastructure Investment Bank  ready to support  development  of  economic, scientific and educational spheres in ArmeniaAsian Infrastructure Investment Bank  ready to support  development  of  economic, scientific and educational spheres in Armenia
Deputy Finance Minister: Armenian government  to broad the scope of  countries with which it has double taxation avoidance agreementsDeputy Finance Minister: Armenian government to broad the scope of countries with which it has double taxation avoidance agreements
Realtors in Armenia to hold qualification certificates, and all real  estate sale and rental ads to be verified on online platformRealtors in Armenia to hold qualification certificates, and all real  estate sale and rental ads to be verified on online platform
High-Tech Ministry presents progress on  AI based  data processing  center developmentHigh-Tech Ministry presents progress on  AI based  data processing  center development
Armenian authorities to permit installation of charging stations for  electric vehicles in parking lots and at retail outletsArmenian authorities to permit installation of charging stations for  electric vehicles in parking lots and at retail outlets
Read more
Exchange rates
10.09.2025
RUB4.51-0.09
USD382.49-0.46
EUR447.51-2.53
GBP517.74-2.08
CAD276.01-1.31
JPY25.93-0.21
CNY53.71-0.07
CHF479.37-3.18