ArmInfo. The 2024 budget of Armenia was underfulfilled. This is stated in a study conducted by the Luys Foundation.
In particular, as noted in the study, the actual revenues of the city budget amounted to 116.7 billion drams, which is only 1.6% more than the previous year, but still 6.4% less than the approved budget figure. And this is despite a number of legislative acts aimed at increasing tax deductions, which received a sharply negative reaction from the public. In particular, compared to previous years, the rates of local fees (for example, fees for various permits) and local payments (for example, fees for parking cars) have increased sharply. Nevertheless, the budget of the capital of Armenia was underfulfilled.
Moreover, as the fund's experts note, the growth of budget revenues compared to the previous year occurred only due to an increase in "taxes and fees", while the other two components of total revenues - "official grants" and "other revenues" - significantly decreased, which offset the growth of total budget revenues.
The largest share is occupied by local taxes and fees, which increased by 4.1 times compared to the previous year. The second largest share is occupied by property taxes, which significantly increased by 39.3% in the reporting year. The increase is due to an increase in the property tax base by 42.9% compared to 2023 as part of the transition to a new tax system from 2024. The growth of local fees by 79.1% was due to a significant increase in parking fees.
It is noteworthy that the revenues from these three types of income for the above reasons increased by 19.7 billion drams compared to the previous year, while the total volume of own revenues increased by only 8.3 billion drams.
Moreover, the fund's experts state that budget expenditures were also underfulfilled. Thus, Yerevan budget expenditures were to amount to 113.7 billion drams, which is 2.3% more than the previous year's figure, but 5.5% less than the revised plan and 9.0% less than the approved budget figure. Both current and capital expenditures were underfunded.
At the same time, expenditures on remuneration, cash incentives and special payments are more than twice as high as in 2023.
According to the implemented programs, the analysis of expenditure performance shows that some vital programs have not been completed even half of what was planned. Such programs include expenditures under the programs "Implementation of design work", "Reconstruction and maintenance of bridge structures", "Maintenance and operation of streets", "Improvement of streets, squares and parks", "City lighting of Yerevan", "Construction of the Yerevan metro infrastructure", "Construction and major repairs of preschool educational institutions". Moreover, the last two of the listed have a great public resonance.
However, despite the fact that the current authorities of the capital constantly declare their intention to put into operation the Ajapnyak metro station as soon as possible as one of their main goals, the program "Construction of the Yerevan Metro Infrastructure" does not provide for the completion of the station by 2024. No expenses have been made in this direction at all.
The implementation of the program "Construction and reconstruction of preschool educational institutions" carried out with state support is only 35.0%, although the construction and reconstruction of schools and kindergartens is one of the priority areas defined by the current program of activities of the RA government.
The city budget surplus amounted to 3.0 billion drams against a deficit of 7.1 billion drams planned in the revised plan. In the reporting year, as in 2023, the budget deficit according to the revised plan increased sharply (more than 25 times), but in fact a significant budget surplus was recorded. This fact, perhaps, confirms that the city authorities are still unable to solve serious problems of budget planning.
