ArmInfo.In 2021, the total capital expenditures of the state budget of Armenia amounted to about 217.8 billion drams, and their implementation was the highest in recent years, amounting to 92.3% of the adjusted plan, and 100% of the originally set annual plan of 216.3 billion drams.
Minister of Finance of Armenia Tigran Khachatryan stated this on March 21 at a meeting of the NA Standing Committee on Financial-Credit and Budgetary Affairs, presenting a report on the results of the activities of the RA government for 2021.
According to him, the volume of capital expenditures in 2021 exceeded the same indicator of 2018 by about 24.7 billion drams and by about 65.8 billion drams compared to 2019. The feasibility of capital expenditures at 92.3% of the adjusted plan in 2021 is the highest in the last four years. In particular, in 2020 the indicator was 84.9%, in 2019 - 73.5%, and in 2018 - 74.0%. At the same time, the government has planned investments in the amount of about 350 billion drams for 2022, which will be about 60% more than last year.
The volume of tax revenues (tax revenues and state duty) to the state budget of Armenia for 2021 exceeded the envisaged figure by 10.2%, and by 1% - the revised figure. Thus, as of December 31, state treasury tax revenues amounted to 1 trillion 586.9 billion drams or 22.7% of GDP (0.3 percentage points higher than in 2020). Meanwhile, tax revenues (taxes and state duty) in the law "On the State Budget for 2021" were fixed at the level of 1 trillion 440 billion 136 million 839.5 thousand drams. And then, during the year, they revised up to 1 trillion 581 billion drams. Thus, last year the tax and customs authorities provided tax revenues and duties by 14.6% or 201.7 billion drams more than in 2020. The increase compared to the pre- Covid 2019 amounted to 122.6 billion drams or 8.4%, from 2018 - 328.8 billion drams or 26.1%. As of December 31, transitional overpayments amounted to 4.1 billion drams, against 373.6 million drams in 2020, 137.3 billion drams in 2019 and 55.3 billion drams in 2018. By 2021, it is planned to increase the tax/GDP ratio to 25% of GDP.
In 2021, the public debt of Armenia increased by $1.257.2 billion (the estimated exchange rate of the Armenian dram against the US dollar was 495.37 drams) - from $7 billion 968.5 million to $9 billion 225.6 million (4 trillion 429, 6 billion drams). Thus, in January-December 2021, the government debt increased from $7 billion 508.5 million (by the end of 2020) to $8 billion 767.9 million (4 trillion 209.8 billion drams or 60.3% of GDP) by about $1 billion 259 .4 million or by 16.8%. External debt (debt obligations of Armenia to international organizations and foreign states, funds received from the issue of Eurobonds) increased from $5 billion 599.5 million by 10.5% or $585.5 million - up to $6 billion 185 million (2 trillion 969.7 billion drams). In particular, on January 26 of this year, Armenia placed the 4th issue of 10-year debt securities in the amount of $750 million among international investors.
The established y-o-y yield of bonds of the 4th issue turned out to be lower than the yield of the 3rd issue - 3.875% against 4.625%. During the reporting period, domestic debt increased from $1 billion 909.0 million by about $673.9 or 35.3% - up to $2 billion 583 million (1 trillion 240.2 billion drams). The debt of the Central Bank increased by 10.5% or $2.2 million and amounted to $457.7 million or 219.8 billion drams (from $459.9 million by the end of last year). As of December 31 last year, the amount of loans issued under government guarantees decreased from $120.7 million to $101.4 million or 48.7 billion drams. By the end of 2021, the share of domestic debt in government debt increased from 25.4% at the end of 2020 to 29.5%, and AMD debt - from 24.2% to 28.28%. The government's message notes that the well-known Fitch and Moody's rating agencies have confirmed Armenia's ratings with a "stable" outlook for 2021, the credit rating is assessed as "reliable", noting the government's ability to manage existing risks. In 2021, the Standard & Poor's reputable agency assigned a "positive" sovereign rating outlook to Armenia, assessing the government's ability to maintain macroeconomic stability and pursue a prudent and reliable macroeconomic policy.
In 2021, reforms were also implemented to improve and develop infrastructure. In this context, steps have been taken to modernize the regulatory and technical base, design, technical control, security, audit, construction skills and knowledge, and in 2021, reforms were carried out to improve and develop infrastructure. In this context, steps have been taken to modernize the regulatory and technical base, design, technical control, safety, audit, construction skills and knowledge. It is noted that as a result of the ongoing economic policy, the growth of gross domestic product in 2021 amounted to 5.7%, the growth of economic activity - 5.8%.
Exports of goods and services to GDP amounted to 35%, compared with 29.8% in 2020 and 41.4% in 2019, indicating the beginning of a recovery in exports. At the same time, exports in 2021 showed outstripping import growth, due to which their negative balance to GDP decreased to -8% (-13.4% in 2019 and -10% in 2020). With the exception of the agricultural sector, growth was recorded in other sectors. In January- December 2021, the growth of the manufacturing industry amounted to 3.3%.
Exports of goods in 2021 increased by 19.1% compared to 2020, while exports of non-commodity goods increased by 18.45%. Merchandise exports topped $3 billion for the first time, recording a 14.1% growth in dollar terms compared to the non-crisis 2019. In 2021, agro-food products worth about 462.3 billion drams were exported from Armenia. In 2021, compared to 2020, the volume of exported agri-food products increased by about 82 billion drams, or 21.6%, and compared to the non-crisis year of 2019, it increased by about 78 billion drams, or 20.2%.
In 2021 Moody's assigned Ba3 foreign and local-currency insurance financial strength ratings (IFSRs) to Export Insurance Agency of Armenia. As of 2021, this company has insured an export transaction worth about 36 billion drams, which is 80% more than in 2020. In January-September 2021, the total net inflow of foreign investment amounted to 162.2 billion drams, and direct investment - 88 billion drams, against 13.8 billion drams 43.2 billion drams in 2020 and 98.4 billion drams and 18. 6 billion drams in 2019.
