Monday, October 23 2017 13:55
Naira Badalian

Head of the Ministry of Finance: In 2018, tax revenues in the state treasury of Armenia will grow by 112 billion drams

Head of the Ministry of Finance: In 2018, tax revenues in the state  treasury of Armenia will grow by 112 billion drams

ArmInfo. Capital expenditures of  the state budget of Armenia in 2018 are planned to increase by 73.8  billion drams, which will be directed to road construction,  irrigation system and energy. "No sensible investor will invest money  in the Armenian economy if we do not have normal roads," Armenian  Minister of Finance Vardan Aramyan told ArmInfo reporter on October  22 during a seminar on "The State Budget for 2018" organized with the  assistance of the German Society for International Cooperation (GIZ).  Note that 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.

The nominal GDP of Armenia in 2018, according to the draft budget for  the next year, will grow by 441 billion - from the expected by the  end of 2017 5,409.1 billion to the projected 5.850.7 billion drams.   Economic growth in 2018 is planned at 4.5% or $ 11.948.9 million.  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 forecasts for economic growth in 2017 from  the planned 3, 2% to 4.3%. The Minister of Finance recalls that,  according to the results of the first half of the year, economic  growth in Armenia was about 6%, which is significant enough for the  formation of positive expectations in the future. 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.

Expectations, as before, are supported by positive signals that the  republic receives from outside.  Traditionally, such are the  expectations of the restoration of the Russian economy, confirmed by  international authoritative structures that the Russian economy has  emerged from the recession and returned to a moderate growth rate in  2017. In addition, the dynamics of the copper and oil market are also  encouraging.

According to the Minister, the consolidated budget of Armenia for the  year 2018 in terms of revenues will make 1.307.3 billion drams  (without the receipt of interbudgetary transfers). Taxes will grow by  112 bln drams - according to the results of the year, the current  income is expected at the level of 1,210 trillion drams, and by the  end of the last year the revenues amounted to 1.135.9 billion drams.  Of which, in 2018, taxes will amount to 1.247.9 billion drams or  21.3% of the runway, against 21.2% in the current year (1135.0  billion drams) and 21.3% in 2016 or 1076.9 billion drams (adjusted  taxes / GDP will be 21.3% instead of 20.9% by the end of 2017 and  actual 20.3% last year). Next year, as explained in the Ministry of  Finance, the state treasury will receive less than 395 billion drams  due to business payments for VAT, income tax and profit tax.

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.

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 implemented through external borrowing  and invested in road construction, irrigation systems and the energy  sector of the country. By the end of 2018, the state debt, compared  with the current year, will grow another $ 300 million - to over $ 7  billion and account for 60% of GDP.

POST A COMMENT
Input digits     


News
IDBank is now in Kapan: Opening of a new branchIDBank is now in Kapan: Opening of a new branch
Armenia to introduce cashback mechanism in tourism industry Armenia to introduce cashback mechanism in tourism industry 
Armenia plans to bring tourist industry`s revenues up to $3bln by  2030Armenia plans to bring tourist industry`s revenues up to $3bln by  2030
Team Telecom Armenia completes upgrading of mobile network in Tavush Team Telecom Armenia completes upgrading of mobile network in Tavush 
For the first time, the bonds of a medical institution to be listed  on Armenia Stock ExchangeFor the first time, the bonds of a medical institution to be listed  on Armenia Stock Exchange
International train Yerevan-Batumi-Yerevan to start operating from June 14International train Yerevan-Batumi-Yerevan to start operating from June 14
Armenia`s authorities to exempt certain Iranian trucks from road tax Armenia`s authorities to exempt certain Iranian trucks from road tax 
Azimut production company installs VOR/DME 2700 radio beacon in ArmeniaAzimut production company installs VOR/DME 2700 radio beacon in Armenia
ADB joins construction project of southern section of North-South  corridorADB joins construction project of southern section of North-South  corridor
RA Minister of Economy meets cognac industry representatives   RA Minister of Economy meets cognac industry representatives   
CBA considers introducing  insurance mechanism to combat financial  fraudCBA considers introducing insurance mechanism to combat financial fraud
Kocharyan: Gas pipeline from Iran to Armenia didn`t not imply any transit opportunity from the startKocharyan: Gas pipeline from Iran to Armenia didn`t not imply any transit opportunity from the start
Armenian-Austrian Intergovernmental Commission meeting on  trade-economic and scientific-technical cooperation  held in ViennaArmenian-Austrian Intergovernmental Commission meeting on  trade-economic and scientific-technical cooperation  held in Vienna
1% Special Transfer Rate for AraratBank Customers1% Special Transfer Rate for AraratBank Customers
Team Telecom Armenia announces launch of 5GTeam Telecom Armenia announces launch of 5G
Rocket Line loan payment deferment and combination: New update of the Idram&IDBank applicationRocket Line loan payment deferment and combination: New update of the Idram&IDBank application
23 of 46 schools renovated under ADB programme 23 of 46 schools renovated under ADB programme 
Armenian interbank foreign exchange market: dollar transactions increased from May 12 to May 16, 2025Armenian interbank foreign exchange market: dollar transactions increased from May 12 to May 16, 2025
Vahe Davtyan: Armenia being marginalized from the emerging  architecture of regional energy transitVahe Davtyan: Armenia being marginalized from the emerging  architecture of regional energy transit
Vahe Hovhannisyan meets with  EIB Vice President, Egypt`s Minister of  International Cooperation, and representatives from JP Morgan and  Bank of America in LondonVahe Hovhannisyan meets with  EIB Vice President, Egypt`s Minister of  International Cooperation, and representatives from JP Morgan and  Bank of America in London
Head of Anti-Counterfeit: We must not allow illegal traders to use  Georgia as a hub for counterfeit goods or a convenient route for   transportationHead of Anti-Counterfeit: We must not allow illegal traders to use  Georgia as a hub for counterfeit goods or a convenient route for   transportation
AraratBank: From a Future Student to a LeaderAraratBank: From a Future Student to a Leader
Event Ticketing Platform Eventhub is now Available in MyAmeria AppEvent Ticketing Platform Eventhub is now Available in MyAmeria App
RA Finance Minister of Finance meets with EBRD  President  in LondonRA Finance Minister of Finance meets with EBRD  President  in London
25% idcoin when buying tickets from all airlines. IDBank25% idcoin when buying tickets from all airlines. IDBank
The majority of transfers to Armenia come from Russia, and flow out  to Switzerland, the UAE and the USAThe majority of transfers to Armenia come from Russia, and flow out  to Switzerland, the UAE and the USA
ZCMC to be the first in Armenia to present a report on biodiversity  managementZCMC to be the first in Armenia to present a report on biodiversity  management
Armenian market  unable to provide personnel for modern competitive  businesses, especially in  mining sectorArmenian market  unable to provide personnel for modern competitive  businesses, especially in  mining sector
Converse Bank and EBRD sign two loan facilities totaling US$ 8 million to support MSMEs and green projectsConverse Bank and EBRD sign two loan facilities totaling US$ 8 million to support MSMEs and green projects
Armenia Featured in Wizz Air’s Special Magazine EditionArmenia Featured in Wizz Air’s Special Magazine Edition
Import customs duty for goods supplied to Armenia from Iran to be reduced to 4.5% Import customs duty for goods supplied to Armenia from Iran to be reduced to 4.5% 
Armenia`s authorities plan to enhance military industry`s potential Armenia`s authorities plan to enhance military industry`s potential 
Armenian government expanding agricultural machinery leasing support  programArmenian government expanding agricultural machinery leasing support  program
Armenia extends repayment term for ADB loan for improvement of  Armenia-Georgia border highwayArmenia extends repayment term for ADB loan for improvement of  Armenia-Georgia border highway
Armenia`s Cabinet declines Capital Markets International Data`s application for Ecos fee operators list Armenia`s Cabinet declines Capital Markets International Data`s application for Ecos fee operators list 
Inecobank to receive $15mln under EBRD `green agenda` Inecobank to receive $15mln under EBRD `green agenda` 
`Solar pathos` turning into source of Armenia`s `energy insecurity` - expert `Solar pathos` turning into source of Armenia`s `energy insecurity` - expert 
EU to mobilize EUR 2.36bln under economic investment plan for Armenia  - diplomat EU to mobilize EUR 2.36bln under economic investment plan for Armenia  - diplomat 
Evocabank to receive EUR 19.4 million financial package from EBRD to  support MSMEs and large enterprises in ArmeniaEvocabank to receive EUR 19.4 million financial package from EBRD to  support MSMEs and large enterprises in Armenia
EBRD expands cooperation with Ameriabank - EUR 50 million Risk Sharing  Framework agreement signedEBRD expands cooperation with Ameriabank - EUR 50 million Risk Sharing  Framework agreement signed
PSRC Head: Installed capacity of solar power plants in Armenia  projected to reach 557 MW in the coming yearsPSRC Head: Installed capacity of solar power plants in Armenia  projected to reach 557 MW in the coming years
Ambassador: Russia offering Armenia a wide range of nuclear power  unitsAmbassador: Russia offering Armenia a wide range of nuclear power  units
ENA`s investment program  for 2025  aims to modernize most worn-out  and vulnerable substationsENA`s investment program  for 2025  aims to modernize most worn-out  and vulnerable substations
PSRC Head: Electricity tariffs to remain unchanged in 2025PSRC Head: Electricity tariffs to remain unchanged in 2025
NPP CEO: Proposals for  new NPP model to be presented in 2026NPP CEO: Proposals for  new NPP model to be presented in 2026
Armenian Deputy PM, Iranian Ambassador discuss bilateral cooperation  agendaArmenian Deputy PM, Iranian Ambassador discuss bilateral cooperation  agenda
Armenian insurance market started to reduce compensationArmenian insurance market started to reduce compensation
Armenia`s SRC delegation attends  fifth meeting of the Subcommittee  on Customs Issues under SEPAArmenia`s SRC delegation attends  fifth meeting of the Subcommittee  on Customs Issues under SEPA
Armenian NPP to be shut down for preventive maintenanceArmenian NPP to be shut down for preventive maintenance
FLYONE ARMENIA offers tickets to Salonica from EUR 19 FLYONE ARMENIA offers tickets to Salonica from EUR 19 
Armenia may try on role of Armenia may try on role of "junction zone" of Eurasian and European  economic spaces - expert 
Number of jobs up in all sectors of Armenia`s economy - minister Number of jobs up in all sectors of Armenia`s economy - minister 
The state  to compensate 40% of farmers` costs for  installing  anti-hail nets in all communities of ArmeniaThe state  to compensate 40% of farmers` costs for  installing  anti-hail nets in all communities of Armenia
One of the most common fraud schemes is phone calls: how to protect yourselfOne of the most common fraud schemes is phone calls: how to protect yourself
Papoyan comments on the situation regarding Armenian cargo in  Georgia: There is an issue, and I think our businessmen are rightPapoyan comments on the situation regarding Armenian cargo in  Georgia: There is an issue, and I think our businessmen are right
Georgian side promises to clarify situation with Armenian cargo  downtime within two daysGeorgian side promises to clarify situation with Armenian cargo  downtime within two days
Victims of financial fraud gather in front of Armenian CB, demand  return of stolen money Victims of financial fraud gather in front of Armenian CB, demand  return of stolen money 
Net profit of Armenia`s insurance sector reaches $2.1mln in 1st  quarter of 2025 Net profit of Armenia`s insurance sector reaches $2.1mln in 1st  quarter of 2025 
Armenia`s minister of territorial administration, UNICEF rep discuss disaster risk reduction Armenia`s minister of territorial administration, UNICEF rep discuss disaster risk reduction 
Armenia on verge of economic crisis - MPArmenia on verge of economic crisis - MP
Read more
Exchange rates
21.05.2025
RUB4.800.04
USD385.060.14
EUR436.583.74
GBP516.291.92
CAD277.441.41
JPY26.800.17
CNY53.450.14
CHF467.255.55