RA Ministry of Finance: Since 2021, more than 50% of the state budget  deficit in Armenia will be covered by internal sources

ArmInfo. Since 2021, more than 50% of the state budget deficit in Armenia will be covered by internal sources. On February 4, Minister of Finance Atom  Janjughazyan stated this at a hearing of Standing Committee on  Financial-Credit and Budgetary Affair of the National Assembly of the  Republic of Armenia.

According to him, at present, the state budget deficit is covered  mainly by external sources, in the ratio of 27% (internal) and 73%  (external). From 2021, this ratio will change in favor of domestic  sources. The minister informed that last year it was planned to  direct about 134 billion drams to cover the state budget deficit, but  in fact 65 billion drams were used for this purpose. Janjughazyan attributed the issue of government bonds to internal sources.

The Minister pointed out the importance of improving the efficiency  of managing state programs, from their development to the completion  and conduct of the audit. This, he said, is necessary to ensure the  growth of public finance efficiency. In this context, he pointed out  the importance of a number of programs, which are formalized as  mandatory for a number of government agencies. There are also  programs with a list of priority activities. To ensure the  effectiveness of the public administration system, an external audit  can be a very important area.

In this regard, Chairman of the RA State Revenue Committee David  Ananyan emphasized the importance of transferring control functions  on publications on financial statements and conducting an audit from  the SRC to the Ministry of Finance of the country. According to him,  this requires legislative changes.

It should be noted that according to the state budget, the deficit  indicator for 2020 will decrease to 160 billion drams and will amount  to 2.3% of GDP, against the previously forecasted 182.6 billion drams  (2.6% of GDP). The deficit will be financed in the amount of 210.5  billion drams from domestic sources and another 50.5 billion drams  are expected to be attracted from external sources. 12-month  inflation is forecasted to be within 4% (+ / _ 1.5%). Tax revenues of  the state budget (tax revenues and state duty) in 2020 are projected  at 1 trillion 602 billion 252 million 712 thousand drams or 22.6% of  GDP, compared to the early 1 trillion 602 billion 130 million) and  adjusted for the current year 1 trillion 464 billion drams or 22.3%  of GDP (and the actual 1 trillion 258 billion drams or 21% of GDP for  2018).  In 2020, Armenia expects to receive official grants from  foreign states and international organizations in the amount of 35  billion 024 million drams or 0.5% of GDP against the previously  pledged 33.8 billion drams, 39.5 billion drams and 11.2 billion drams  per 2019 and 2018, respectively.