Burden of social payments: RA "updated budget" 

ArmInfo.In 2024, the expenditures of the state treasury of Armenia, compared with the approved figure for this year, will increase by approximately 562.5 billion drams, and will amount to more than a third of GDP - 3  trillion 206.5 billion drams (30.5% of GDP).

This is stated in the law of the Republic of Armenia on the state budget for 2024, approved by the Cabinet of Ministers of the country. Let us remind you that in the initial version of the draft budget presented for discussion in  the National Assembly, expenses in the amount of 3 trillion 017 billion 437 million drams were planned. Accordingly, the deficit will increase to 482.9 billion drams, from the previously planned 341.1  billion drams.

Thus, according to the forecasts underlying the budget, in conditions  of ensuring 7% GDP growth in 2024, (and in the presence of favorable  external conditions, up to  9%), the income of the state treasury of  Armenia will amount to 2 trillion 723 billion drams (25.9% of GDP ).

78.3% of total expenses or 2 trillion 511.2 billion drams (23.9% of  GDP) will be directed to current expenses (in 2023 this figure is  planned at 79.3% and 22.1% of GDP). In the previous version of the  draft budget, the indicator was planned at 77% of all expenses. 21.7%  or 695.3 billion drams will be net expenses on non-financial assets.

In particular, in 2024, expenditures on salaries of public sector  employees will amount to more than 240.2 billion drams, or 13.6%  (28.8 billion drams) more than the approved budget. The cost of  paying interest on government debt will amount to 323.1 billion  drams. It is planned to provide organizations with subsidies in the  amount of 185 billion drams from the state budget, which is 22.1% or  33.5 billion drams more than the approved budget for 2023.

The growth of current expenses will largely be facilitated by an  increase in state budget expenditures (878.2 billion drams) on social  and pension payments, which increased by 23.2% or 165.4 billion drams  compared to the approved budget for 2023. In the original version of  the project, an increase of 16.3% or 107.6 billion drams was planned.  In general, social spending will increase from 11.7% of GDP expected  by the end of this year and 1 trillion 103.8 billion drams, up to  12.4% of GDP or 1 trillion 295.3 billion drams.

It is planned to provide a grant from the 2024 state budget in the  amount of 294 billion drams, which is 9.6% or 25.7 billion drams more  than this year's approved budget. 590.7 billion drams are provided  for the purchase of services, goods and other expenses, which is  23.2% or 111.4 billion drams more than the approved budget for 2023.  The draft state budget also provides for an increase in funds that  will be allocated to the sectorsof defense, public order, security  and judicial activities - by approximately 57.3 billion drams  compared to 2023.

As part of current expenses, a reserve fund is planned, the size of  which in 2024 will be 60.5 billion drams or 0.6% of GDP and 2% of  expenses.