Tuesday, November 17 2020 16:53

ArmInfo. In 2021, the projected growth of the Armenian economy will be 4.8%. On November 17, presenting the draft state budget for 2021 in parliament, RA  Minister of Finance Atom Janjughazyan stated this.  According to him,  the growth of the economy will be provided due to the growth of  capital expenditures.  219 billion drams will be allocated for these  purposes.

Another 81bln drams is planned to be used to finance priority  government programs. The Minister noted that the executive branch  does not intend to cut current expenditures, in particular, on the  sectors of health care, education and social support. They will grow  in comparison with 2020 and even with the pre-crisis 2019. In  particular, spending on health care sector will increase by 2.1%,  education and culture sectors - by 1.2%. Social security spending  will rise by 2.2%. Expenses can be saved through IMF loans up to $  420 million.  According to the draft state budget for 2021, the  revenue item is provided in the amount of 1 trillion 569.06 billion  drams, expenditure - 1 trillion 843.1 billion drams with a deficit of  274 billion drams (4.1% of GDP). Economic growth is projected at  4.8%, and inflation in the budget for 2021 is set at 4% (+ 1.5%).  

Next year it is planned to collect 1.3 trillion drams in taxes and  duties, which is much more than this year.  According to the draft  state budget for 2021, by the end of this year, the state debt of  Armenia will be $ 8 billion 850 million, and by the end of next year  - $ 9 billion 215 million.  

The Minister recalled that in 2020, due to the coronavirus pandemic,  then military actions, the forecast of economic growth of 5% was  replaced by a decline of 6%, and then - by 6.8%. In other words, if  the GDP was forecasted at the level of 7.1 trillion drams, now it is  obvious that this indicator is overestimated by at least 1 trillion  drams. But even in this case, the government considers it necessary  to maintain the volume of capital construction, which will help to  generate employment opportunities and strengthen the infrastructure  in the republic (roads, power lines, and so on). In relation to GDP,  capital expenditures will amount to 3.2% - one of the highest in all  years.