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
Every year, Lori region loses $40 million due to untapped tourism  potentialEvery year, Lori region loses $40 million due to untapped tourism  potential
We are going round in circles: Aram Kocharyan on  current IT  situation in ArmeniaWe are going round in circles: Aram Kocharyan on  current IT  situation in Armenia
Net direct foreign investments in Armenia`s economy up Net direct foreign investments in Armenia`s economy up 
RA president signs laws nationalizing ENA CJSCRA president signs laws nationalizing ENA CJSC
Responsible innovations instead of offshores - CB Responsible innovations instead of offshores - CB 
Armenia, Uruguay to increase bilateral trade turnover Armenia, Uruguay to increase bilateral trade turnover 
Armenian vice-premier takes part in EEC Council`s meeting Armenian vice-premier takes part in EEC Council`s meeting 
Yerevan to host Black Sea Trade and Development Bank`s Annual Meeting  Yerevan to host Black Sea Trade and Development Bank`s Annual Meeting  
Solid Municipal Waste Management project launched in HrazdanSolid Municipal Waste Management project launched in Hrazdan
Armenian IT sector`s output developed as compared with other regional states - expert Armenian IT sector`s output developed as compared with other regional states - expert 
Lawyer on `legal terror` surrounding ENA Lawyer on `legal terror` surrounding ENA 
AraratBank participated in the WEPs regional experience-sharing workshopAraratBank participated in the WEPs regional experience-sharing workshop
1,507 trucks with apricots leave for Russia since beginning of summer 1,507 trucks with apricots leave for Russia since beginning of summer 
TechWeek transforms Vanadzor into an innovation hubTechWeek transforms Vanadzor into an innovation hub
In Q1 2025, unemployment rate in Armenia decreased to 13.9%In Q1 2025, unemployment rate in Armenia decreased to 13.9%
Moody`s upgrades Converse Bank`s ratingsMoody`s upgrades Converse Bank`s ratings
Armenia`s industrial sector is experiencing a significant  declineArmenia`s industrial sector is experiencing a significant  decline
Power generation in Armenia increased by 3.6% in a yearPower generation in Armenia increased by 3.6% in a year
Armenia`s State Revenue Committee proposes postponing payment of  road, environmental taxes, entry duties Armenia`s State Revenue Committee proposes postponing payment of  road, environmental taxes, entry duties 
46 trucks with Armenian brandy enter Russia 46 trucks with Armenian brandy enter Russia 
Expert: Armenia has every chance to become a key regional  hub for  innovative solutionsExpert: Armenia has every chance to become a key regional  hub for  innovative solutions
IDBank issues the 3rd, 4th and 5th tranches of bonds of 2025IDBank issues the 3rd, 4th and 5th tranches of bonds of 2025
ARMSWISSBANK Launches Mastercard World – A New Premium CardARMSWISSBANK Launches Mastercard World – A New Premium Card
Ministry of Economy: Compared to 2018, job numbers in Armenia  increased by 33.9%Ministry of Economy: Compared to 2018, job numbers in Armenia  increased by 33.9%
Illegal mining in Armenia`s Syunik causes AMD 63mln damage to public Illegal mining in Armenia`s Syunik causes AMD 63mln damage to public 
Rospotrebnadzor requested additional information from competent  authorities in Armenia regarding the reason for the ban of Eskimo ice  cream Rospotrebnadzor requested additional information from competent  authorities in Armenia regarding the reason for the ban of Eskimo ice  cream 
Pashinyan discusses steps for establishing a major AI data center in  ArmeniaPashinyan discusses steps for establishing a major AI data center in  Armenia
In June,  Armenia`s annual inflation rate increased to 3.9%  driven  by higher prices for food  and servicesIn June,  Armenia`s annual inflation rate increased to 3.9%  driven  by higher prices for food  and services
Armenian products to enter Cyprus and US markets: CIBRS announces National Warehouse program strategyArmenian products to enter Cyprus and US markets: CIBRS announces National Warehouse program strategy
European Investment Bank remains Armenia`s key partner in  infrastructure projects - MinisterEuropean Investment Bank remains Armenia`s key partner in  infrastructure projects - Minister
Armenian Parliament gives  Armenian Parliament gives  "green light" to nationalization of ENA
Armenia`s dividends from ZCMC $113mln since 2022Armenia`s dividends from ZCMC $113mln since 2022
Ardshinbank summed up the raffle organized for Mastercard Business cardholdersArdshinbank summed up the raffle organized for Mastercard Business cardholders
Armenia extends ban on export of scrap metal until Feb. 1 2026 Armenia extends ban on export of scrap metal until Feb. 1 2026 
62 trucks with Armenian brandy cross Russian border 62 trucks with Armenian brandy cross Russian border 
Armenia to fix tariff quota on individual types of goods imported  from Iran Armenia to fix tariff quota on individual types of goods imported  from Iran 
Narek Karapetyan: Almost all infrastructure companies, except for  ENA, have increased their tariffs for servicesNarek Karapetyan: Almost all infrastructure companies, except for  ENA, have increased their tariffs for services
EIB: Education is one of key areas of partnership between EU-Armenia EIB: Education is one of key areas of partnership between EU-Armenia 
Armenian Deputy Foreign Minister participates in  4th International  Conference on Financing for Development in SevilleArmenian Deputy Foreign Minister participates in  4th International  Conference on Financing for Development in Seville
Armenian Prime Minister, President of  Trafigura Group discuss  potential  cooperation  in mining sector  Armenian Prime Minister, President of  Trafigura Group discuss  potential  cooperation  in mining sector  
ADB to provide Armenia with EUR236 million for construction of  Sisian-Kajaran roadADB to provide Armenia with EUR236 million for construction of  Sisian-Kajaran road
Vassilis Maragos: EU willing to strengthen technological cooperation with Armenia through concrete stepsVassilis Maragos: EU willing to strengthen technological cooperation with Armenia through concrete steps
Ardshinbank at the Forefront of Digital Security: Sponsor and Participant of BugBounty 2025 EventArdshinbank at the Forefront of Digital Security: Sponsor and Participant of BugBounty 2025 Event
Armenia`s regulator  approved the sale of 100% of GNC-ALFA s shares  to Viva Armenia CJSCArmenia`s regulator  approved the sale of 100% of GNC-ALFA s shares  to Viva Armenia CJSC
 International Chamber of Commerce ready to assist Armenia in hosting COP-17 International Chamber of Commerce ready to assist Armenia in hosting COP-17
Armenia to extend ban on ferrous metal exportsArmenia to extend ban on ferrous metal exports
IDBank Opens a New Branch at Homplex MallIDBank Opens a New Branch at Homplex Mall
MONEYVAL experts to visit Armenia in September to assess work on money laundering control MONEYVAL experts to visit Armenia in September to assess work on money laundering control 
Goods traceability to be improved in Armenia Goods traceability to be improved in Armenia 
Vaharshapan and Khoi communities to be merged Vaharshapan and Khoi communities to be merged 
Armenian NA OKs ENA nationalization Armenian NA OKs ENA nationalization 
Viva celebrates 20th anniversary: Armenia`s high-tech industry  minister on reforms in Armenia`s telecommunication industry Viva celebrates 20th anniversary: Armenia`s high-tech industry  minister on reforms in Armenia`s telecommunication industry 
Economic diversification meets Armenia`s interests - Kaja Kallas Economic diversification meets Armenia`s interests - Kaja Kallas 
5.1% increase in number of jobs in Armenia 5.1% increase in number of jobs in Armenia 
AraratBank: Special Rate for SWIFT Transfers up to EUR 20,000AraratBank: Special Rate for SWIFT Transfers up to EUR 20,000
Team Telecom Armenia, Team Systems under one roof: new Team Place  smart solutions center  openedTeam Telecom Armenia, Team Systems under one roof: new Team Place  smart solutions center  opened
Armenian Parliament discussing  nationalization of Electric Networks  of Armenia CJSCArmenian Parliament discussing  nationalization of Electric Networks  of Armenia CJSC
Armenia values development of  cooperation with Denmark in  high  technology and renewable energyArmenia values development of  cooperation with Denmark in  high  technology and renewable energy
ArmSwissBank: First in Armenia to Publish a Climate Transition PlanArmSwissBank: First in Armenia to Publish a Climate Transition Plan
Ucom Launches 5G Network in Abovyan and EjmiatsinUcom Launches 5G Network in Abovyan and Ejmiatsin
Read more
Exchange rates
09.07.2025
RUB4.910.01
USD383.82-0.37
EUR449.11-1.47
GBP521.34-0.31
CAD280.24-1.11
JPY26.18-0.06
CNY53.46-0.08
CHF482.060.44