Armenia will receive official grants of approximately USD 81.6  million in 2022

ArmInfo.In 2022, Armenia expects to receive official grants in the amount of 40.3 billion drams, or approximately $ 81.6 million. This is stated in the draft law "On the  state budget of the Republic of Armenia for 2022", approved by the  Cabinet of Ministers on September 30.

In general, according to the document, in the next fiscal year,  official grants will amount to 40.3 billion drams, against 24.3  billion drams pledged by the state budget for the current year and  actual 12.4 billion drams over the past year.

Thus, from the EU, within the framework of grant programs provided  for by the Armenia-EU action program within the framework of the  European Neighborhood Policy, budget assistance in the amount of 5.3  billion drams or 9 million euros will be received for reforms in the  judicial sector. In 2021, the budget set its expectations for this  item in the amount of 1.7 billion drams, and in 2020 the figure was  47.3 billion drams.

Another 13 billion drams (out of the previously announced 2.6 billion  euros) is expected to be received from the EU through various  financial instruments within the framework of a new 5-year stage of  Armenia-EU cooperation within the framework of the Eastern  Partnership. The funds will be used to implement 5 joint priority  initiatives of the RA and EU governments related to the construction  of the North-South highway, other infrastructure, socio-economic  development of the southern regions of the Republic of Armenia,  modernization of healthcare institutions, improvement of educational  institutions and modernization of scientific infrastructure, digital  management and promoting innovations, as well as modernizing quality  infrastructure systems in the field of economics, including  increasing the level of safety and quality of agricultural products,  creating a modern Logistics Center within the framework of  public-private partnerships.

Funding for other targeted grants next year will amount to 22 billion  drams or 44.6 billion US dollars, instead of 22.6 billion drams  approved in 2021 and actual 5.9 billion drams in 2020.

To note, according to the draft state budget for 2022, 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).

The expenditures of the state budget of Armenia in 2022, compared  with the indicator set in the state budget for 2021, will grow by  18.2% - up to 2 trillion 188.4 billion drams. 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 in 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).

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 laid  down in the basis of the state budget for 2022, as of December 31,  2021, the state debt of Armenia will amount to 4 trillion 509 billion  drams or 64.1% of GDP, and by the end of 2022 the figure will reach 5  trillion 029 billion drams or 63.9% GDP.