Wednesday, June 12 2024 11:26
Alexandr Avanesov

State budget both financial and political document - minister 

State budget both financial and political document - minister 

ArmInfo. The state budget is not only an accounting document, it is, first of all, a political  document. RA Minister of Finance Vahe Hovhannisyan stated this on June 12, presenting a report on the execution of the state budget of Armenia for 2023 in the National Assembly.

According to the minister, the state budget is the basis for the  formation of current and future policies. In this regard,  Hovhannisyan expressed regret that there are no broad discussions  being held on the issue of implementation of the country's basic  economic law. As a rule, the opposition does not participate in them,  which either does not want discussions or does not want to return to  the constructive field. "As a result, effective discussions tend to  not take place amid political intrigue and a lack of qualified  commentary.  Although the report presents the results of work in the  past, it nevertheless has a direct connection in the context of both  current and future developments The fact that the implementation of  the state budget may not be of interest makes it necessary to clarify  the forms and methods of its presentation. It is very important to  use terms very carefully, not to speak only in numbers, not to  highlight only expenses, revenues, deficits and fiscal stability,"  the minister said.

He noted that the policies implemented by the authorities should be  assessed behind the numbers, especially in the context of  socio-economic developments. In 2023, the Armenian authorities  strictly adhered to fiscal rules - the capex exceeded the state  treasury deficit by approximately 284 billion drams, and the level of  government debt was lower than planned by 1.7 percentage points.  Thus, according to the minister, in 2023, tax revenues (tax revenues  and state duties) of the state treasury grew at a faster pace - by  0.7 percentage points. - up to 23.4% of GDP (the program of  activities of the Cabinet of Ministers until 2026 plans to increase  the figure to 25%). In particular, last year tax revenues (taxes and  state duties) increased by 295.9 billion drams or 15.4% - to 2  trillion 221.9 billion drams, against 1 trillion 962.5 billion drams  in 2022. The upward trend in capital expenditures continued into  2023. The indicator from 4.6% in relation to GDP reached 5.2%, which  made it possible to properly finance infrastructure programs in the  field of security and social nature. In absolute numbers.

The growth of tax revenues and, accordingly, the level of GDP  recorded above the planned level, as well as the efforts of fiscal  policy, made it possible to reduce the level of the deficit to 2% of  GDP (0.1 percentage points below the 2022 figure) or by 1.1  percentage points. below the planned level. In absolute figures, the  figure was about 189 billion drams.

The level of government debt to GDP was 48.1%, or 1.4 percentage  points more than in 2022. At the same time, the figure turned out to  be lower than planned by 1.7 percentage points, Hovhannisyan  indicated. Let us recall that according to the Ministry of Finance,  in 2023, Armenia increased its public debt by 11.4% or $1 billion  207.6 million - up to $11 billion 845.3 million. During the reporting  period, government debt in American currency increased by $1 billion  208.3 million. or by 12% - from $10 billion 086.4 million by the end  of 2022 to $11 billion 294.6 million, and in drams - by 602.3 billion  drams or 15.2% - to 4 trillion 571.9 billion drams.

The execution of the state budget expenditures amounted to 97%.  Financial authorities also improved the indicator on capital  expenditures. If in 2022 the figure was 95%, then last year it  increased by 1 percentage point. Thus, in 2022, the implementation of  programs implemented with external assistance was 81.6%, then in 2023  the figure reached 92%. 96.3% of the planned programs were completed  through external resources, and 99% through the Ministry of Defense.

In general, according to the Statistical Service, in 2023 the RA GDP  grew by 8.7%. In absolute figures, GDP amounted to 9 trillion 502.8  billion drams, or, at the current exchange rate, approximately $23  billion 464 million. As for the structure of GDP, trade (wholesale  and retail) occupies 12.7%, manufacturing industry - 11.1% ,  agriculture - 8.4%, real estate - 8.3%, financial sector - 7.4%,  construction (not to be confused with the sale of real estate) -  6.9%. The IT and telecommunications sector occupies 5.5%, healthcare  - 5.4%, transport sector - 3.9%, mining industry (including both  mines and sand and stone quarries) - 2.9%, energy - 2.6 %.  

POST A COMMENT
Input digits     


News
"Veolia Jur" responded to Yerevan Mayor`s Advisor Kamo Areyan
Sanosyan got acquainted with construction progress of roads bypassing  KirantsSanosyan got acquainted with construction progress of roads bypassing Kirants
The mayor`s office proposed the government to reconsider the  agreement with Veolia JurThe mayor`s office proposed the government to reconsider the agreement with Veolia Jur
France`s potential for construction of new NPP in Armenia discussed France`s potential for construction of new NPP in Armenia discussed
Iranian companies to carry out construction on 32km-long section of  Kajaran-Agarak road Iranian companies to carry out construction on 32km-long section of Kajaran-Agarak road
Gevorg Papoyan met with UNDP Permanent Representative Natia  Natsvlishvili Gevorg Papoyan met with UNDP Permanent Representative Natia Natsvlishvili
Know the penalties for late personal income tax filing Know the penalties for late personal income tax filing
Foreigners` transactions on buying and selling property reduced in  ArmeniaForeigners` transactions on buying and selling property reduced in Armenia
Land purchase and sale transactions in regions of Armenia increased  by 12.7%Land purchase and sale transactions in regions of Armenia increased by 12.7%
4.1% rise in housing prices in Yerevan in first half of 20244.1% rise in housing prices in Yerevan in first half of 2024
Armenia`s minister of territorial administration visits Masrik-1  solar stationArmenia`s minister of territorial administration visits Masrik-1 solar station
Domestic debt forming part of government`s debt exceeds foreign debt  for first timeDomestic debt forming part of government`s debt exceeds foreign debt for first time
UNDP programme: warm houses, less expensesUNDP programme: warm houses, less expenses
Ministry of High-Tech Industry supports Team Telecom Armenia Ministry of High-Tech Industry supports Team Telecom Armenia
Armenian-United Arab Emirates business forum to take place in Abu  DhabiArmenian-United Arab Emirates business forum to take place in Abu Dhabi
IDBank continues the IDBank continues the "By Your Side" Program
Armenian ambassador to Greece highlights importance of Armenia`s  active participation in TIF-HELEXPOArmenian ambassador to Greece highlights importance of Armenia`s  active participation in TIF-HELEXPO
Air Arabia plans to sue Armenia at ArbitrationAir Arabia plans to sue Armenia at Arbitration
EFSD conducts workshop on procurement and financial management of  projects EFSD conducts workshop on procurement and financial management of  projects 
Iran-Armenia high-voltage line to be put into operation in few months  - ambassadorIran-Armenia high-voltage line to be put into operation in few months  - ambassador
New Armenal management could start presale preparation New Armenal management could start presale preparation 
Our team is doing everything possible to manage increased traffic  more efficiently - ZvartnotsOur team is doing everything possible to manage increased traffic  more efficiently - Zvartnots
CBA to direct 80% of its annual profit to partly cover interest-free  bill of exchange  CBA to direct 80% of its annual profit to partly cover interest-free  bill of exchange  
Few concerned in Armenia over high pesticide level in food - NGO head Few concerned in Armenia over high pesticide level in food - NGO head 
Head of Economic Competition Protection Commission explains gas price  rise Head of Economic Competition Protection Commission explains gas price  rise 
EFSD to provide $2 mln grant to Armenia for program to improve  quality of financial reporting of public sector organizationsEFSD to provide $2 mln grant to Armenia for program to improve  quality of financial reporting of public sector organizations
WB to provide $110mln loan to Armenia for universal health coverage WB to provide $110mln loan to Armenia for universal health coverage 
Ingo Insurance presents job loss insurance in Armenia`s market Ingo Insurance presents job loss insurance in Armenia`s market 
As long as Pashinyan government remains in power in Armenia, it is  unlikely Armenia will launch a counter bid or join BRICS  - opinion As long as Pashinyan government remains in power in Armenia, it is  unlikely Armenia will launch a counter bid or join BRICS  - opinion 
Cattle productivity improvement programme to be launched in Armenia Cattle productivity improvement programme to be launched in Armenia 
South Caucasus needs unified market without strategic partners -  expert South Caucasus needs unified market without strategic partners -  expert 
New world order to show Armenia can and must cooperate with with all  nations - Tatul Manaseryan New world order to show Armenia can and must cooperate with with all  nations - Tatul Manaseryan 
Armenia needs 600MW NPP - ex-premier Armenia needs 600MW NPP - ex-premier 
Post of Russia considering possibility of mailing to Armenia via  North Ossetia  Post of Russia considering possibility of mailing to Armenia via  North Ossetia  
Advantages of franchising discussed in Armenia with Acba Bank`s  participation Advantages of franchising discussed in Armenia with Acba Bank`s  participation 
Czech Republic to assist modernization of Yerevan metro Czech Republic to assist modernization of Yerevan metro 
Wine output records 32.6% y/y decline in Jan-May Wine output records 32.6% y/y decline in Jan-May 
ICC NCA to assist organization of WCIT2024 in Armenia ICC NCA to assist organization of WCIT2024 in Armenia 
New social vulnerability assessment system to be introduced in  Armenia New social vulnerability assessment system to be introduced in  Armenia 
Armenia`s government to provide AMD 2.2bln to construction  organizations Armenia`s government to provide AMD 2.2bln to construction  organizations 
AMD 4․046․161  to the Strong Mind NGO. July`s beneficiary is the SIA Armenia programAMD 4․046․161 to the Strong Mind NGO. July`s beneficiary is the SIA Armenia program
Wine-filled days of DILIJAN WINE FEST 2024 will take place on August 3 and 4Wine-filled days of DILIJAN WINE FEST 2024 will take place on August 3 and 4
Ardshinbank was again Named Best in Two Categories by Asian Banking & Finance MagazineArdshinbank was again Named Best in Two Categories by Asian Banking & Finance Magazine
Some 20,000 Nagorno-Karabakh Armenians employed in Armenia - official Some 20,000 Nagorno-Karabakh Armenians employed in Armenia - official 
China Southern Airlines launches Urumqi - Yerevan - Urumqi flights China Southern Airlines launches Urumqi - Yerevan - Urumqi flights 
Get 3000 idcoins by synchronizing your Idram and IDBank accountsGet 3000 idcoins by synchronizing your Idram and IDBank accounts
Armenia`s involvement in regional projects emphasized Armenia`s involvement in regional projects emphasized 
Armenian Airlines launches Yerevan-Ufa-Yerevan flightArmenian Airlines launches Yerevan-Ufa-Yerevan flight
Unemployment up in Armenia Unemployment up in Armenia 
Armenia`s economy vulnerable to external shocks - EFSDArmenia`s economy vulnerable to external shocks - EFSD
EAEU Industrial Council considers robotics development programme EAEU Industrial Council considers robotics development programme 
Smart Place: smart solutions for comfort and energy-savingSmart Place: smart solutions for comfort and energy-saving
Russia among Armenia`s major trade partners - Gevorg Papoyan  Russia among Armenia`s major trade partners - Gevorg Papoyan  
Armenia, UAE discuss possibilities of agricultural cooperation Armenia, UAE discuss possibilities of agricultural cooperation 
Expert on `blank spots` of budget planning in Armenia Expert on `blank spots` of budget planning in Armenia 
Armenia`s economy minister to take part in 6th meeting of EAEU  Industrial Policy CouncilArmenia`s economy minister to take part in 6th meeting of EAEU  Industrial Policy Council
No payment via Idram? More than 21,000 points of sale accept payment via IdramNo payment via Idram? More than 21,000 points of sale accept payment via Idram
<Gazprom Armenia> will conduct a survey of underground gas pipelines  with a total length of over 335 km will conduct a survey of underground gas pipelines  with a total length of over 335 km
WB to issue grant to Armenia for environmental protection programmes WB to issue grant to Armenia for environmental protection programmes 
JFPR to issue $3mln grant to improve rural household resilience JFPR to issue $3mln grant to improve rural household resilience 
Read more
Exchange rates
24.07.2024
RUB4.450.03
USD388.390.48
EUR421.09-0.26
GBP501.260.78
CAD281.69-0.22
JPY25.130.27
CNY53.370.04
CHF437.972.70