Monday, February 17 2020 13:33

ArmInfo. The budget deficit of Armenia in January-December 2019 amounted to 63.9 billion drams ($ 133.1 million), decreasing by 39.3% year on year, against the 60.5%  decline in 2018. According to the RA Statistical Committee, the  budget revenues of Armenia accelerated the y-o-y growth rate from  8.4% to 16.3%, while expenditures unfolded from a 3.8% decline to a  12.2% increase, amounting to 1,559.1 billion and 1,623.1, billion  drams respectively.

In the structure of revenues, the share of taxes and duties increased  year on year (2019 to 2018) insignificantly- from 93.8% to 93.9%, in  absolute terms increasing by 16.4% to 1464.3 billion drams (against  8.6% - 2018 growth).

In particular, growth in income from profit tax slowed down from  54.6% to 37.5% to 233.9 billion drams.  The acceleration of y-o-y  growth rates was recorded in 2018 in income from value added tax -  from 7.2% to 15.6% - to 506.5 billion drams, from income tax - from  4.5% to 23.6% - to 440.8 billion drams, from customs duties - from  10.5% to 18.6% - up to 95.1 billion drams, from sales tax - from  16.4% to 48.4% - up to 31.6 billion drams, from state duty - from  2.2% to 21.1%- up to 45.9 billion drams. At the same time, the upward  trend, with some slowdown, continued in payments on the use of  natural resources and environmental conservation - from 35.2% to  17.5% - to 63.7 billion drams, from targeted social payments - from  10.1% to 7.5 % - up to 18.7 billion drams, from excise tax - from  32.4% to 27.2% - up to 138.6 billion drams.

Against this background, subsidies went from the downward to the  upward trend in the structure of budget expenditures - from 1.4%  decline by 1.9% increase to 113.4 billion drams, grants - from 5.1%  decline by 18.7 % increase up to 149.99 billion drams. At the same  time, the growth of expenses on the purchase of goods and services  accelerated - from 0.7% to 23.7% to AMD 192.1 billion, on benefits  and pensions - from 3.5% to 6.5% - to 453.2 billion, on salaries -  from 5.2% to 13% - up to 172.6 billion. For non- financial assets,  the dynamics turned from a 37.5% decline to a 26% increase - up to  186.6 billion drams.  Interest payments on state debt slowed down the  y-o-y growth rate from 13.8% to 13.3%, amounting to 157.6 billion  drams, of which 87.8 billion - on external debt, with a slowdown from  17.3% to 17%.

To note, the calculated AMD exchange rate as of December 31, 2019 was  479.70 AMD/ $ 1, and in January-December, the average calculated AMD  rate was 480.45 AMD/ $ 1.