ArmInfo.Today, there is a need for legislative regulation of the proportions of budget financing priorities. This was announced on October 15 at a meeting of the Permanent Parliamentary Commission on Financial-Credit and Budgetary Issues during the discussion of the report on the execution of the state budget for the first half of 2019, Armenian Minister of Finance Atom Dzhandzhugazyan.
According to him, the use of this mechanism will avoid artificial restrictions. The Minister expressed hope that this initiative will be discussed in the National Assembly of the Republic of Armenia during the consideration of the 2020 draft state budget. Moreover, as the head of the Ministry of Finance noted, it fits into the system of program budgeting and will allow solving the problem of more efficient use of the state treasury expense. Dzhandzhugazyan recalled that the program budgeting system began to be applied in 2018, however, it will get practical application in the draft state budget of 2020. He also said that in the first half of this year, Armenia's GDP amounted to 2 trillion. 724 billion drams, which is 10% more than in the same period last year. According to the minister, state revenues amounted to 758.5 billion drams, of which 72 billion drams were own revenues. Moreover, the share of tax revenues amounted to 713 billion drams. In comparison with the forecasted share of tax revenues for the first half of the year, the indicator amounted to 55.3 billion drams. "Compared to the previous year, tax revenues in the first half of the year increased by 24.5%>," the head of the Ministry of Finance explained, adding that 6.7 million drams were received in the country in the form of official grants.
Note that according to the budget, in 2019, in the context of economic growth of 4.9% and a growth in gross fixed capital formation of 6.1%, the projected increase in exports of goods and services to GDP will be 41% instead of 38.7% in 2018. According to the results of 2019, per capita GDP in Armenia is expected to reach $ 4,604 instead of $ 4,280 a year earlier. The nominal GDP of Armenia in 2019, according to the draft budget, will grow by about 560 billion - from 6.193.0 billion drams ($ 12,752.6 million) in 2018 to 6,756.2 billion drams ($ 13,717.5 million) laid down in the project. GDP growth is expected to be provided by a 0.5% increase in net indirect taxes (in 2018, 0.6%), 2.5% will provide growth in the services sector (4% this year), construction will grow by 0 , 4% (0.6% in 2018), the agricultural sector - 0.7% (0.6% in 2018), industry with an increase of 0.8%. The 2019 consolidated budget in terms of revenue is estimated at 1.533.6 billion drams (without revenue from inter-budget transfers) instead of 1.343.5 billion drams in 2018, from the line of expenditures - 1.685.2 billion drams (without revenue from inter-budget transfers), against 1.500.5 billion drams in 2018, the deficit is about 151.6 billion drams or 2.2% of GDP.