National Statistics: Budget deficit growth rates slacken by May 2016 from 4-fold to 60.4%

ArmInfo. Budget deficit in Armenia for Jan-Apr 2016 totaled 6.6bln drams ($135mln) growing 60.4% year on year versus 4-fold growth a year ago.  According to the National Statistical Service of Armenia, budget revenues grew 0.4% versus previous 1.6% growth to 345.5bln drams, amid 6.8% growth of expenditures versus previous 10.3% growth to 411.1bln drams.  Following the budget surplus (21.3bln drams) in January 2016, in February there was deficit (35.3bln drams) that fell in March to 23.8bln drams (a 33% decline within the month) and 11.7% growth in April to 26.5bbln drams.  Expenditures and revenues increased 14.7% and 14.1% respectively (to 88.5bln and 128.1bln drams).  Tax revenues increased from 94% to 95% of total budget revenues (for Jan-Apr 2016 versus the same period of 2015). In absolute terms, this indicator increased 1.3% to 328.2bln drams (versus 1.9% growth a year ago). In particular, customs duties fell from 18.5% to 16.1bln drams, VAT revenues fell 7.7% to 116.7bln drams. Underpayment of the income tax totaled 25.8mln drams (versus negative 35.6mln drams a year ago).  Turnover tax revenues increased significantly - 32.2% to 4.6bln drams, target social payments - 24.5% to 3.8bln drams. Payments of compulsory social security - 24.3% to 1.3bln drams. Excise tax revenues - 22.5% to 16.5bln drams. Payments for use of natural resources and environment protections increased 20.1% to 7.8bln drams. Profit tax revenues increased 12.1% to 45.8bln drams. Revenues from the tax on income increased 6.1% to 97.5bln drams. Fixed payments increased 4.1% to 946.2mln drams and incomes from state tax - 0.6% to 9,2bln drams.

In this light, budget expenditures increased dramatically, except the spending on purchase of goods and services that fell 39.6% to 42.7bln drams and expenses on non-financial assets that fell 23% to 7.9bln drams.  Subsidies increased 4.3-fold to 34.8bln drams, interest payments on the state debt increased 30.1% to 38.9 bln drams, of which 21.3bln drams on the foreign debt (a 49.2% y-o-y growth).  Grants totaled 49.2bln drams with a 7.7% y-o-y growth, allowances and pensions totaled 129.4bln drams with a 4.7% y-o- y growth, and salary costs totaled 39.8bln drams with a 4.9% y-o-y growth.