ArmInfo.RA Deputy Prime Minister Mher Grigoryan presented the main indicators for the implementation of the state budget in 2019 during the meeting of the Parliament of the Republic of Armenia. In particular, he emphasized that the implementation of the budget in 2019 was consistent with the indicators established by the fiscal rules.
According to the Deputy Prime Minister, capital expenditures exceeded the state budget deficit, and the growth rate of current priority spending was lower than the nominal GDP growth rate, calculated on the basis of historical trends. In particular, the state budget expenditures in 2019 amounted to 1.6 trillion. drams, providing 92.4% of the y-o-y program indicator. He drew attention to the fact that due to internal sources of the budget the expenditures were fulfilled in the amount of 95.3% or over 1.5 trillion drams and 4.7% or 76 billion drams - due to external grants and loans.
"For the reporting year, not only the expenses stipulated by the state budget were secured, but also the projected and newly formed obligations in terms of revised expenses due to additional tax revenues were fully met," Grigoryan said. As a result, the Deputy Prime Minister continued, the state budget expenditures increased by 12.6% or by 182 billion drams. The ratio of expenditures to GDP amounted to 24.9%, against 24.1% in 2018 and instead of the projected 24.4%.
At the same time, in 2019, the amount of revenues to the state budget amounted to 1.5 trillion drams, which is 16.7% or by 223 billion drams higher than the indicator a year ago. According to him, tax revenues increased by 16.4% or by 206 billion drams. The ratio of tax revenue to GDP in 2019 was 22.35%, which is 1.6 percentage points higher than has been forecasted, and 1.4 percentage points higher than in 2018. In particular, according to Grigoryan, in 2019 the budget was implemented with a deficit of 64 billion drams, and in comparison with 2018, the budget deficit decreased by 39.3%. The deficit to GDP ratio was 1%, against the expected 2.2%, and 1.8% in 2018.
He recalled that in 2019, the Armenian economy accelerated growth by registering a high rate of 7.6%, despite the fact that on average world economic growth was 2.9%, in the EU - 1.4% and the EAEU - 1.6%.
