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).
