ArmInfo. Following the results of 2019, the Armenian government expects GDP growth at 4.9%, while the state budget deficit will make 150bln AMD or 2.2% of GDP. This was stated by the Minister of Finance of Armenia Atom Janjughazyan on September 27 in the government, presenting the draft state budget of the country for 2019.
According to him, the calculations were made on the basis of the medium-term expenditure program for 2019- 2021 with some correction due to internal and external developments. According to the head of the Ministry of Finance, initially, according to the medium-term expenditure program, Armenia's GDP growth for the next year was projected at 5.3%, but as a result of growth adjustments it is planned that in 2018, instead of 4.5% by the end of this year, it will be 6, 5%. Accordingly, based on changes in the database, the forecast for the following year was revised.
Nevertheless, as Atom Janjughazyan assured, this does not mean that the nominal value of GDP will decrease, which will grow by 130 billion drams. Inflation will also be in the acceptable range - 2.7%.
According to the minister, in 2019 capital expenditures will grow from the current 2.3% of GDP to 3%. The tax revenues will amount to 1.396 trillion drams, expenses - 1.614 trillion drams. Most of the state budget funds will be directed to the implementation of programs in the social and cultural fields - 44%. 24% of all state budget funds will be allocated for solving tasks related to maintaining public order, security and defense, 12.3% are planned to be invested in the real sector of the economy. In the form of grants 3.2% of all expenditures will be allocated to local government budgets, and 5.8% to state agencies. In 2019, the government will send 10% of all budget funds to service the public debt. As the minister pointed out, in 2018, as a result of a restrained fiscal policy, the ratio of state debt to GDP will be 50.4%. A similar figure is expected by the end of 2019. The minister also said that next Monday the draft of the country's Main Economic Law will be sent to the National Assembly of the country. To recall, according to the state budget for 2018, the revenue part will make 1.308.2 billion drams, against 1.210.0 billion drams approved for 2017 and 1,135.9 billion drams actual for the year 2016. At the same time, tax revenue is expected to grow. In particular, the Ministry of Finance expects growth in the line of tax revenues to 1, 248. 5 billion drams. Economic growth in 2018 is planned at 4.5% or $ 11.948.9 million.