Monday, October 30 2017 15:28

ArmInfo. By 2018, the state sector of Armenia will lose 5564 staff units. Finance Minister Vardan Aramyan stated this on October 30, speaking at the discussion of the draft state budget for 2018 in the permanent parliamentary commission on financial and credit and budget issues.

As Deputy Minister of Finance Armen Hayrapetyan said in an interview with ArmInfo, first of all vacant staff will be reduced. In addition, it is planned to eliminate redundant and duplicating functions.

According to the Finance Ministry, by the beginning of  next year, the public sector will employ 138.5 thousand people. The total wage bill will be 243.5 billion AMD, down by 3 billion drams. Thus, in state medical institutions, the number of employed will decrease from 34,145 to 32,571 thousand, in educational institutions - from 66,409 to 63,612 thousand, recreation culture from 8,499 will decrease to 8288, social sphere from 3,096 to 3,072, the branches of the economy will be reduced from 6203 to 5978, the apparatus management - from 19221 to 18444 thousand, the sphere of science will keep the number of personnel - 5778 people.

In general, according to the draft budget for the next year, treasury spending will grow by 104.1 billion drams from 1,360.1 billion approved to the end of this year to 1.464.2 billion AMD (1.420.6 billion in 2016). 88.2% or 1.291.8 billion AMD accounted for current expenditure, 11.8% or 172.4 billion AMD for non-financial assets (98.6 expected in 2017, actual expenditures of 2016 amounted to 164.8 billion AMD).  Capital expenditures in the amount of 111.5 billion drams will be financed from internal resources, 61.2 will be attracted from outside.

The main directions of the budget expenditures will be social items-pensions and benefits - 27% or 398.4 billion AMD, wages of state employees - 21% or 309.5 billion AMD, defense sphere will require 12% or 181.7 billion AMD. 140.5 billion AMD ($ 67.8 million) or 10% will be directed to servicing the state debt (interest rate). According to other expenses, 261bln AMD or 18% are envisaged: 48.2bln AMD (3.4%) for the subsidies to the communities, social and cultural sphere and science - 68.7bln AMD (5%), the reserve fund will receive 21, 1 billion drams (1.4%) of the trade mission, the embassies will cost 11 billion or 1% of the total budget for expenditures, 13.2 billion drams (1%) will be allocated for the expenditures of the management apparatus, while the other costs of the power unit will require 17.9 billion drams (1%) and other directions will receive 81.5 billion (6%).

To note, economic growth in 2018 is planned at 4.5% or $ 11.948.9 million. 12-month inflation by the end of 2018 will be 4%, instead of expected in 2017, 2.4% and actual -1.1% in 2016. 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 AMD, respectively. 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.