ArmInfo. The deficit of the state budget of Armenia in the first half of 2020 amounted to 48.8 billion drams ($ 101 million), of which about 48% or 23.2 billion drams (over $ 48 million) was recorded in June. In y-o-y terms, the dynamics of this indicator worsened to a 2.4-fold decline - from last year's surplus to the current deficit, and in June alone the negative level significantly decreased. To note for comparison, that in the first half of 2019, the state budget was closed with a surplus, with a y-o-y growth by 33-fold and a 14-fold monthly growth, and in both cases, with an exit from a deficit to a surplus.
According to the Statistical Committee of the Republic of Armenia, the y-o-y budget revenues of Armenia decreased by 5.5% (against 25.1% growth in the previous year), amounting to 716.7 billion drams, while expenditures sharply accelerated growth from 4.3% to 20,3%, amounting to 765.5 billion drams. In monthly terms, the growth of income by 17.5% to 102.9 billion drams was accompanied by a decline in expenses by 3.9% to 126.1 billion drams, which reduced the deficit by 47% - to 23.2 billion drams.
The y-o-y decline in the budget revenues is due to a reduction in fees for all taxes, except for social payments (an increase of 15%). Budget revenues from income tax declined most significantly - by 41.4%, customs duty - by 27%, VAT - by 18.7%, and a slightly smaller decline was recorded in excise tax - by 13.8%, state duty - by 12, 8%, profit tax - by 11.2%, turnover tax - by 7.5%. The dominant items in the structure of income are taxes from VAT (213.3 billion drams), income tax (207.03 billion drams), profit tax (97.3 billion drams).
Against this background, in the expenditure side of the budget, the decline was recorded only in interest payments of external debt, while the rest of the items were in growth. The highest y-o-y growth was noted in expenditures on grants - by 31.6% and social benefits and pensions - by 22.5%, expenses on salaries come next with significant margin- by 2.7%, the purchase of goods and services - by 7%, subsidies - by 8.2%. Interest payments on the state debt increased by 9.2%, amounting to 79.8 billion drams, of which 38.7 billion - on the external debt and 41.1 billion - on the domestic debt. Moreover, the y-o-y growth of budgetary expenditures on interest payments on external debt accelerated from 12.1% to 22.5%, and on domestic debt, the dynamics turned from 1.7% growth towards 2.1% decline. In the structure of state budget expenditures, social benefits and pensions dominate in terms of volume - 267.02 billion drams, followed by expenses on interest payments on the state debt with a large margin (79.8 billion), on grants - 75.9 billion, on salaries - 74.2 billion, on the purchase of goods and services - 66.1 billion drams.
To note, average settlement rate of the dram in January-June 2020 amounted to 483.50 AMD / $ 1, and in June - 481.27 AMD / $ 1. As of June 30, 2020, the estimated exchange rate of the dram was 482.36 AMD / $ 1.