Thursday, September 30 2021 13:26

ArmInfo. The expenditures of the state budget of Armenia in 2022, in comparison with the indicator projected  in the state budget for 2021, will grow by 18.2% - up to 2  trillion 188.4 billion drams, RA Minister of Finance Tigran  Khachatryan said at a government meeting on September 30, presenting  the draft law on budget of the Republic of Armenia for 2022 ".

So, according to the document, by the end of 2022, GDP growth will be  7% (from 6.5% expected by the end of 2021), nominal GDP, compared  with the program indicator for 2021, will grow by 635.9 billion - to  7.869.4 billion drams (from the expected 7,031.2 billion drams at the  end of the current year). The GDP deflator will grow by 4.6% (6.8% at  the end of 2021), 12-month inflation - 5.2% (7.4% is expected by the  end of this year), and average inflation will reach 5.6% in 2022 (7%  expected in 2021).

According to forecasts, real GDP growth by industry will have the  following picture: industry will grow by 8% (from 4.3% expected by  the end of this year), agriculture by 3.9% (from 5.6% expected, incl.  year), construction - by 18% (against 1.5% in 2021), services - by  5.9% (instead of 8.1% in the current year), and other taxes - by 6.8%  (from the expected 7.1% this year). At the same time, consumption  will grow by 4.8% from 7.7% expected by the end of 2021.

According to the draft budget for next year, state treasury revenues  and official transfers in 2022 will amount to 1 trillion 946.2  billion drams (24.7% of GDP), against 1 trillion 656.9 billion drams  (23.6% of GDP)  expected by the end of this year and actual 1  trillion 560.7 billion drams for 2020 (25.2% of GDP).  At the same  time, tax collections and state duty to GDP will grow by 0.9  percentage points - up to 23.4% and will amount to 1 trillion 843.8  billion drams, instead of 1 trillion 581.0 billion drams expected at  the end of 2021 (22.5%) and actual 1 trillion 385.2 billion drams for  2020 (22.4% of GDP).

State treasury expenditures will amount to 2 trillion 188.4 billion  drams (27.8% of GDP), instead of 1 trillion 986.0 billion drams  (28.2% of GDP) expected by the end of 2021 and 1 trillion 894.6  billion drams (30.6% of GDP) in 2020. ). Of these, 1 trillion 841.9  billion drams or 23.4% of GDP will be directed to cover current  expenditures, against the expected 1 trillion 762.2 billion drams or  25.1% of GDP by the end of this year and actual 1 trillion 668.5  billion drams or 27% of GDP for 2020.

At the same time, as the head of the Ministry of Finance pointed out,  the expenses allocated for the improvement of economic and social  infrastructures will record an unprecedented growth - 4.4% of GDP,  and capital expenditures will amount to 350 billion drams or 27.8% of  GDP. To note, transactions with non-financial assets in  January-August 2021 amounted to 103.6 billion drams, of which  expenditures on non-financial assets (capital expenditures) amounted  to 104.5 billion drams, which is 29.8% more than in the same period  last year, mainly due to an increase in defense spending, which, in  turn, is the result of quarterly reallocations.

According to Khachatryan, 278.6 billion drams will be allocated for  infrastructure projects, as well as projects for the development of  regions, or 31.6% more than the indicator set in the state budget for  the current year. In 2022, allocations to education, science, culture  and sports will amount to 223.3 billion drams, or 27.4% more than the  target for 2021. So, for financing projects in the field of science  in 2022, 83% more will be allocated than in 2021 - in the amount of  25.1 billion drams (about 50 million dollars).  About 580 billion  drams will be allocated for social security programs, or 15% more  than the indicator set in the state budget for 2021.

The deficit of the state treasury in 2022 will reach 242.2 billion  drams or 3.1% of GDP, against 329.1 billion drams or 4.7%, expected  at the end of this year and 334 billion drams or 5.4% of GDP for  2020.  Government debt will be reduced from AMD 4 trillion 727.8  billion or 60.1% of GDP, against AMD 4 trillion 273.9 billion (60.8%  of GDP) expected by the end of 2021 and AMD 3 trillion 923.9 billion  or 63.5% of GDP in 2020.  In general, according to the forecasts  projected in the state budget for 2022, as of December 31, 2021,  Armenia's public debt will amount to AMD 4 trillion 509 billion or  64.1% of GDP, and by the end of 2022 the indicator will reach AMD 5  trillion 029 billion or 63.9% GDP.