ArmInfo. The expenditures of the state budget of Armenia in January-July 2021, compared to the same period in 2020, increased by 12.1% or by 113.4 billion drams. The growth is largely due to an increase in costs related to servicing public debt, non-financial assets, benefits and grants. This is evidenced by the data of the Ministry of Finance of Armenia.
In general, for 7 months of this year, state budget revenues amounted to about 920.2 billion drams, expenditures - 1051.6 billion drams, the deficit reached 131.5 billion drams. The indicators laid down in the annual adjusted program of income, expenses and deficit were fulfilled by 57.3%, 54.2% and 39.1%, respectively. Operating expenses increased by about 10%
So, for the reporting period, current expenses amounted to 961.3 billion drams or 74.3% of the planned indicator for nine months. Compared to the same period in 2020, the indicator increased by 9.8% or 86.2 billion drams. In particular, 92.5 billion drams were allocated for the remuneration of public sector employees, which amounted to 72% of the program indicator for 9 months and 1.3% or 1.2 billion more than in the same period last year. 86 billion drams or 60.6% of the planned indicator for 9 months were allocated for the purchase of goods and services, which is 2.7% or 2.3 billion drams more than in the same period of 2020. The financial authorities directed 97.4 billion drams or 72.3% of the planned figure for January-September to service the government debt. Compared to the same period in 2020, debt service costs increased by 17.2% (by 14.3 billion drams).
In 7 months, 79.3 billion drams were allocated from the state budget for subsidies, or 81% of the planned indicator for 9 months, thus having recorded 10.5% (by 7.5 billion drams) growth compared to the same indicator for 2020. The growth is largely due to the implementation of business support programs to eliminate the economic consequences of coronavirus infection, subsidizing interest rates on agricultural loans, loans for the purchase of agricultural raw materials, as well as the trade and infrastructure development program implemented with the assistance of the WB. During the reporting period, grants in the amount of 107.2 billion drams were allocated from the state budget, which amounted to 72.7% of the planned indicator for 9 months, of which 105.1 billion drams were sent to the public sector, 2.1 billion drams - to international organizations. In particular, 37.6 billion drams in the form of subsidies were allocated to community budgets (exceeding last year's figure by 16.7% or 5.4 billion drams). 37.9% of current expenditures - 364.3 billion drams, or 12.6% (40.6 billion drams) more than in the same period of 2020 the payment of social benefits and pensions was allocated: 214.1 billion drams were allocated for pensions, 150.2 billion drams - on benefits. During the reporting period, an increase in expenditures on benefits was recorded - by 31.2% or by 35.7 billion drams, which was mainly due to an increase in expenditures due to martial law. Expenditures on this line reached 48 billion drams or 96.2% of the planned indicator for 9 months.
Expenses on non-financial assets amounted to 91.1 billion drams, which is a relatively low figure - 50.5% of the program indicator for 9 months. This is mainly due to the implementation of programs in the areas of transport, defense, public order, security, judicial activity, education and irrigation. Expenditures on non-financial assets increased by 41.7% or 26.8 billion drams compared to the same period last year, which is mainly due to the improvement in the conditions of the building of the RA Ministry of Defense, as well as an increase in capital expenditures in the field of road transport.
To recall, according to the approved state budget for 2021, the state treasury revenues will amount to about 1 trillion 509 billion drams, and expenditures - 1 trillion 850 billion drams, and the deficit at 341 billion drams. Tax revenues (tax collections and state duties) in the document are fixed at 1 trillion 440 billion 136 million 839.5 thousand drams. The financial authorities have revised their expectations - by about 80 billion drams, increasing the program figure for tax collections - up to 1 trillion 601 billion drams, and by 75 billion drams in terms of expenditures - up to 1 trillion 940 billion drams.
