Thursday, April 22 2021 12:55
Naira Badalian

By the end of 2020, Armenia exceeded the legal threshold in terms of  government debt

By the end of 2020, Armenia exceeded the legal threshold in terms of  government debt

ArmInfo.The revenues of the Armenian state treasury amounted to approximately 1 trillion 560 million 655 thousand drams, expenses - 1 trillion 894 million 647  thousand drams.

The deficit was at the level of 333 million 991  thousand drams. On April 22, at a Cabinet meeting, the Armenian  government approved the annual report on the execution of the state  budget for 2020.  Janjughazyan recalled that at the end of 2019,  Armenia recorded a "rise". With 2.9% real growth in the world  economy, the Armenian economy grew by 7.6%. In nominal terms, tax  collections increased by 16%, resulting in a 1.4 percentage point  increase in the tax / GDP ratio. Capital expenditures, compared to  2018, in nominal terms increased by 30% or 2.9% of GDP. At the end of  2019, government debt was less than 50% of GDP. All this, as the  minister pointed out, influenced the quality of the obligations  undertaken by Armenia to various groups of beneficiaries. This  increase, according to the head of the Ministry of Finance, made it  possible to increase budget allocations. For example, education,  science, culture and sports received 11% more, health care received  22% more.

Presenting the main indicators for 2020, the minister said that the  deficit exceeded the planned level of 2.3% of GDP or about 161  billion drams, reaching 334 billion drams or 5.5% of GDP. The  government debt to GDP ratio reached 63.5%. This, as the minister  pointed out, according to the logic of fiscal rules allowing for  growth of up to 60% of GDP, obliges the Armenian government to submit  a draft macro and fiscal measures that will allow the republic to  return to the permissible 60% within the next 5 years.

The document will be submitted to the legislator by May 1.

To note, at the end of March 2020, the national debt reached $ 8.6  billion, the government debt amounted to $ 8.1 billion. By the end of  2019, the national debt was $ 7.9 billion, and the government debt  was $ 7.5 billion.

Let us remind that according to the approved law "On the state budget  for 2020", in the conditions of 4.9% GDP growth, the nominal GDP is  laid at the level of 7.095.1 billion drams. The income item of the  budget is fixed at the level of 1.696 trillion drams or 23.9% of GDP,  expenditures - 1.855 trillion drams. The deficit is laid in the  amount of up to about 160.6 billion drams or 2.3% of GDP. The  deficit, as expected, was planned to be financed in the amount of 211  billion drams from internal sources, and another 50.5 billion drams  is expected to be attracted from external sources. 12-month inflation  is forecasted 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. 

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