Friday, November 5 2021 12:16
Naira Badalian

Armenia to increase allocations for solving social problems by about  $ 15.4 million in 2022

Armenia to increase allocations for solving social problems by about  $ 15.4 million in 2022

ArmInfo.The Armenian government plans to increase the expenditures of the Ministry of Labor and Social Affairs by 15.1%, RA Minister of Finance Tigran Khachatryan  said on November 5 at a joint meeting of the standing parliamentary  committees to discuss the draft state budget for 2022 in the  parliament.

According to the Minister, the financing of the department (including  the costs of maintaining the administrative apparatus) will be  increased from 503 billion 670 million drams, approved by the budget  for 2021, to 579 billion 880.7 million drams.

So, according to the draft state budget, 30 billion 921.3 million  drams are provided for assistance to disadvantaged social groups next  year, against 37 billion 1888 million drams in 2021. Within the  framework of the program for ensuring payments under the social  package, instead of 10 billion 619.4 million drams to 147 493  thousand beneficiaries of the program, in 2022 will amount to 9  billion 949.8 million drams to 130 687 beneficiaries. Under the  program of caring for persons over 18 years old, 2 billion 975.2  million drams will be allocated, against 3 billion 104.5 million  drams.

To improve the demographic situation in 2021, the financial  authorities have provided 25 billion 249.6 million drams. From  January 1, 2022, the minimum pension and benefits in Armenia will  increase by 2,100 drams - from 26,500 drams (at the current exchange  rate - slightly less than $ 55) to 28,600 (slightly less than $ 60).  Military disability pensions for conscript soldiers will also grow:  for disabled people of the first group - from 40 to 43 thousand  drams, the second - from 30 to 33 thousand, the third - from 27 to 30  thousand. In case of loss of a breadwinner, in a family with deceased  conscript soldier, the military pension will be increased from 27 to  30 thousand drams. From January 1, 2022, it is also planned to  increase the amount of the allowance for caring for a child up to 2  years old, old age, disability, in case of loss of a breadwinner,  setting it at 28,600 drams, instead of the current 26,500 drams. The  amount of the benefit for about 8,500 children with disabilities  since childhood will be increased from 26,500 to 37,000 drams. In  addition, from January 1, 2022, the Armenian government will allocate  50 thousand drams (about $ 100) to families at the birth of their  third child and subsequent children. The allowance will be paid  monthly until the child reaches 6 years of age.

Within the framework of the program of social assistance in case of  disability, 18 billion 797.5 million drams will be allocated in 2022,  against 14 billion 351.9 million drams this year. In terms of  employment, the authorities will allocate less in 2022 than in 2021 -  from 2 billion 098.2 million drams to 1 billion 564.3 million drams.

780.4 million drams are envisaged for the housing provision program,  and 3 billion 317.9 million drams for assistance to families, women  and children, instead of the current 3 billion 696.8 million drams.

For reimbursement of deposits in the Sberbank of the USSR, 1 billion  515 million drams are provided, instead of 1 billion 212 million  drams in 2021. Under the program of bonus payments and for honorary  titles, 35,430 beneficiaries will be paid 10 billion 989.3 million  drams in 2022. 3 billion 110.9 million drams will be allocated for  reforms in the field of social protection.

It should be noted, that the expenditures of the state budget of  Armenia in 2022, compared with the approved state budget for 2021, in  relation to GDP will increase by 1 percentage point - up to 4.4%, or  about 338 billion drams. Current expenditures will grow by almost 207  billion drams and will amount to 23.4% of GDP. Thus, the state  treasury expenditures in 2022, in comparison with the indicator laid  down in the state budget for 2021, will grow by 18.2% - up to 2  trillion 188.4 billion drams, (27.8% of GDP), instead of the expected  by the end of 2021 1 trillion 986.0 billion drams (28.2% of GDP) and  actual for 2020 1 trillion 894.6 billion drams (30.6% of GDP). 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.

About 84.2% of the total average annual expenditure in 2022 will be  current expenditures (in 2021 this figure was set at 88.3%). The  growth in current spending in 2022 will largely be driven by an  increase in government spending on social benefits and pensions. For  these purposes, next year, 8.3% or 44 billion drams will be allocated  more - up to 571.844 million drams, against 527, 873 million drams  laid down in the state budget for the current year and actual 559,  072 million drams in 2020. So, in 2022 it is planned to increase the  size of the minimum pension and social benefits. However, the rest of  the main indicators used to calculate the state pension will remain  at the 2021 level. In 2022, state budget expenditures on salaries,  compared to 2021, will increase by 3.9 billion drams, or 2.2%, to  184.9 billion drams.