ArmInfo. In January-October 2023, the RA state budget expenses, compared to the same period last year, increased by 14.3% or 238.9 billion drams, mainly due to an increase in social benefits and pensions, expenses on non-financial assets (capital expenses), interest payments, as well as an increase in grants.
According to the Ministry of Finance, in January-October 2023, the RA state budget revenues amounted to 1895.4 billion drams, expenses - 1914.4 billion drams, and a surplus - 19 billion drams. At the same time, according to the adjusted annual plan, revenues are expected to amount to 2 trillion 334.3 billion drams, expenses - 2 trillion 601.2 billion drams, and the deficit will reach 267 billion drams. Thus, the performance for the reporting period was 81.2% for income, 73.6% for expenses, and 7.1% for deficit.
Thus, during the reporting period, expenses reached 1 trillion 914.4 billion drams (1 trillion 675.5 billion drams for the same period in 2022) with an adjusted annual plan of 2 trillion 601.2 billion drams.
Current expenses amounted to 1 trillion 647.5 billion drams (1 trillion 474.3 billion drams for the same period in 2022) or 86.1% of all expenses, with an adjusted annual plan of 2 trillion 060.8 billion drams. Transactions with non-financial assets amounted to 266.9 billion drams (201.2 billion drams in 2022) or 20.8% of all expenses, with an adjusted annual plan of 540.5 billion drams.
The lion's share of current expenses fell on the payment of social benefits and pensions - 574.9 billion drams (an increase of 14.4% from last year); 164.7 billion drams were allocated to pay salaries to public sector employees, or 13.8% more than in the same period of 2022.
Compared to January-October 2022, public debt servicing costs increased by 23.8% or 44.4 billion drams (up to 230.9 billion drams) due to an increase in both internal and external interest payments. The increase in domestic interest payments was due to an increase in the volume and interest rates on Treasury bonds in circulation, and the increase in interest payments on external loans was due to an increase in the volume of loans and floating interest rates.
During the reporting period, grants provided by the state also increased, which is mainly due to state support for commercial organizations and individual entrepreneurs working in the field of information technology in January-October 2023, subsidies, support for areas for the purpose of infrastructure development and compensation for damage caused to life or health of military personnel during the defense of the Republic of Armenia, as well as with increasing costs for financial equalization grants to communities. In particular, expenses for compensation for harm caused to the life or health of military personnel amounted to 34.7 billion drams, exceeding the figure for the same period last year by 24.4% (6.8 billion drams).
