Friday, December 8 2023 00:24
Naira Badalian

Armenian Parliament approves 2024state budget 

Armenian Parliament approves 2024state budget 

ArmInfo. The Armenian Parliament has approved the main financial document for 2024. 71 MPs voted for  its adoption, 25 MPs voted against.  According to the document, in 2024, in conditions of ensuring 7% GDP growth, the revenues of the state treasury of Armenia will amount to 2 trillion 723 billion drams  (25.9% of GDP), and expenses - 3 trillion 206 billion drams (30.5% of GDP).

Of the 2 trillion 723 billion drams of state treasury revenue, 2  trillion 613 billion will be tax revenues and state duties (24.9% of  GDP), against the expected 2 trillion 277.8 billion for this year  (24.1% of GDP) and 1 trillion 962.5 billion drams (23.1% of GDP) over  the past year. 22 billion 276 million drams will be official grants  and 87 billion 676 million drams will be other income.

The growth of the GDP deflator will be 4%, with an expected 3.5% by  the end of this year and actual 8% for 2022.

GDP growth in the republic will be ensured mainly by an increase in  added value in the main sectors of the economy: in industry- by 4.7%,  in agriculture - 3.5%, in construction - 8.9%, in the service sector  - 7.9%, net taxes - 7.3%. Consolidated state budget revenues will  amount to 2 trillion 815.1 billion drams (excluding revenues from  interbudgetary transfers), consolidated expenses - 3 trillion 298  billion drams (excluding interbudgetary revenues). Community income  is projected at 248.7 billion drams (including official grants from  the state budget).

The state budget deficit compared to the initial project increased by  about 142 billion drams and will amount to 482.9 billion drams or  4.6% of GDP. The deficit will be financed both from internal  resources - in the amount of 351.1 billion drams, and from external  sources - 131.8 billion drams.  Average inflation is forecast at  3.2%, instead of the expected 2.2% by the end of 2023 and the actual  8.6% for 2022.

Current expenses will reach 2 trillion 511.2 billion drams (23.9% of  GDP), instead of 2 trillion 091.3 billion (22.1% of GDP) expected at  the end of this year and actual 1 trillion 898.7 billion (22.3% of  GDP) for 2022.

The government reserve fund for 2024 is provided at an  unprecedentedly high volume - 156 billion drams.  In the initial  version, the size of the Reserve Fund was 94 billion drams, but  taking into account the needs of forcibly displaced persons from  Nagorno-Karabakh, this amount was increased. A total of 47 billion  drams will be allocated to solve this problem. The same new programs  that will be developed during the implementation of the draft state  budget will be financed from the Reserve Fund.

Expenditures on non-financial assets will amount to 695.3 billion  drams (6.6% of GDP), against 562.1 billion drams (5.9% of GDP)  expected at the end of 2023 and 380.4 billion drams (4.5% GDP) for  2022.  Capital expenditures will amount to about 695 billion drams  and will exceed this year's figure by 27% (6.6% of GDP). 42% of  capital expenditures will be allocated to defense. As the head of the  Ministry of Finance Vahe Hovhannisyan explained  yesterday, compared  to the initial version, defense spending will decrease by 0.3% (554  billion drams), which is due to numerous circumstances, including due  to the fact that defense revenues are growing faster than expenses.

795 billion drams will be allocated for social security programs, or  22% more than the plan for 2023.  Expenditures on education will  amount to about 287 billion drams, or 30% more than according to the  plan for 2023, and 170 billion drams will be allocated to healthcare.

In 2024, the government will need 805.2 billion drams to repay and  service the debt, of which 483.0 billion drams will be debt  repayment, and 322.2 billion drams will be interest payments.

Armenia's public debt will reach 5 trillion 314 billion drams (50.5%  of GDP), instead of 4 trillion 659 billion drams expected by the end  of 2023 (49.3% of GDP), and 4 trillion 659 billion drams, fiscal for  2022 (49 .2% of GDP). The government's debt will amount to 5 trillion  082.9 billion drams (48.3% of GDP) or $11 billion, 892 million,  against 4 trillion 446.1 billion (47% of GDP) or $10 billion 910  million, expected at the end of 2023 and 3 trillion 969.7 billion  drams or $10 billion 086 million - for 2022 (46.7% of GDP).  In  accordance with the requirements of Article 21 of Part 8.1 of the Law  of the Republic of Armenia "On the Budget System of the Republic of  Armenia", when calculating the draft state budget of the Republic of  Armenia for 2024, foreign exchange rates on the foreign exchange  market of the Republic of Armenia, formed as of November 1, were  used. In particular, the settlement exchange rate of the US dollar  was fixed at 402.39 AMD$1 (in the preliminary version, the figure was  fixed at 385.9 AMD $1), euro - 424.48 AMD, pound sterling- 488.46AMD,  the Chinese yuan rate is 54.98AMD, and the Russian ruble is 4.33AMD.

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