Finance Ministry: Armenian budget income in 2018 will increase to 97.3 bln AMD

ArmInfo. The budget revenues of Armenia in 2018 will grow by 97.3 billion AMD - up to 1.307.3 billion AMD (without the receipt of interbudgetary transfers). Taxes will grow by 112 billion AMD, according to RA Minister of Finance Vardan Aramyan's statement on October 30, speaking at the discussions on the draft state budget for 2018 in the NA Standing Committee on Financial-Credit and Budgetary Affairs.

According to the project of the budget for 2018, 95.5% of expected revenues will be tax revenues of 1.247.9 billion AMD. According to the results of the year, current incomes are expected at the level of 1,210 trillion AMD, and by the end of last year the revenues totaled 1,135.9 billion AMD. 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 AMD due to payments to businesses on 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 AMD.

In 2018, international structures and foreign countries are expected to attract official grants of 35.6 billion AMD. In 2017, the expected figure was 30.9 billion AMD, and in 2016 their actual volume was 28.4 billion AMD. Other budget revenues will make up 23.8 billion AMD next year, in 2017 they are expected at 44.1 billion AMD, and in 2016 they made 30.6 billion AMD.

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 AMD, 150.1 billion and 284.7 billion AMD, 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 AMD 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, 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.