Tuesday, October 12 2021 14:47

ArmInfo.The expenditures of the defense sector of Armenia next year will increase by about 11%, or by 33 billion drams, amounting to more than 345.4 billion drams.   Meanwhile, 518.2 billion drams (about $ 1.050 billion) will be  allocated to service and repay the government debt, of which 214.6  billion drams (about $ 434.7 million) will be allocated for interest  payments.  

So, according to the draft law "On the state budget of the  Republic of Armenia for 2022", approved at a government meeting on  September 30, the financial authorities plan to allocate 15.8% of the  expenditure part of the state budget to the defense sector.

In particular, in 2022, the RA Ministry of Defense will direct  funding for the implementation of five programs, for which only 345.4  billion drams (345 420.8 million drams) are provided in the draft  state budget, while 222 884.8 million drams or 64.5% of the funds  will be spent on current expenses, 122 535.9 million drams or 35.5%  on non-financial assets. Expenditures will increase by 33,726.7  million drams or 10.8% compared to the approved state budget of the  Republic of Armenia for 2021.

The lion's share of funding- more 340 billion drams (340 569.3  million drams, which is 34 087.8 million drams or 11.1% more than the  amount approved by the RA state budget for 2021), will be directed to  the maintenance of the RA Armed Forces, military, combat equipment,  vehicles, communication system equipment, barracks and technical  property, purchase of food, equipment, fuel and lubricants,  procurement of weapons and ammunition, ensuring the combat capability  and life support of the army.  It is planned to allocate 2 billion  635.4 million drams from the budget for military medical services,  which is 199.8 million drams less than the amount approved by the  state budget for the current year.

As part of the event to replenish medical equipment, 1,129.8 million  drams will be allocated to implement the supply of modern medical  equipment to the central garrison military hospitals. 1,029.1 million  drams will be allocated for military training and retraining. The  draft state budget of the Republic of Armenia for 2022 envisages  869.4 million drams for the International Military Cooperation  Program (to finance the expenses of 18 military attaches and  representatives of the Armed Forces of the Republic of Armenia in the  embassies of foreign states and in international organizations).  Within the framework of the humanitarian demining and expert services  program, it is planned to clear 50,000 sq. meters - 317.6 million  drams are provided for these purposes, which is 21.4 million drams  less than the funding approved by the RA state budget for 2021.

To note, according to the forecasts laid down in the basis of the  draft state budget for 2022, the revenues of the state treasury of  Armenia, in comparison with the approved state budget for 2021, will  grow by about 437 billion drams or by 28.9%, expenses - by 18.2% or  337.5 billion drams. The deficit of the state treasury will be  reduced by 99.2 billion drams or 29% and will amount to 242.2 billion  drams or 3.1% of GDP.  Thus, expenditures will reach 2 trillion 188.4  billion drams, of which 1 trillion 841.9 billion drams or 23.4% of  GDP will be directed to cover current expenses.

According to the forecasts laid down in the basis of the state  budget, by December 31, 2021, Armenia's public debt will amount to  4.509 billion drams (about $ 9.135 billion) or 64.1% of GDP, and by  the end of 2022 the figure will reach 5.029 billion drams (about $  10.188 billion) or 63. 9% of GDP. At the end of 2022, the government  debt, compared to the same indicator for 2021 (4.274 billion drams or  about $ 8.656 billion), will decrease by 0.1 percentage points and  will amount to 4.779 billion drams (about $ 9.682 billion) or 60.7%  of GDP - the increase will amount to about $ 1.026 billion (the  estimated exchange rate of the Armenian dram to the dollar is 493.6  drams).