Armenian government approves 2016 draft budget
The Armenian government on Thursday approved the draft budget for 2016, which projects a 2.2% GDP growth. Finance minister Gagik Khachatryan told a Cabinet session the GDP deflator index is projected at 4%, the 12-month inflation at 4% (± 1.5%) and the budget deficit at 3.5% of GDP.
He said the draft budget calls for 1 trillion and 373.7 billion drams in revenues and 1 trillion and 183 billion drams in spending. The projected deficit is 197 billion drams.
"According to the draft state budget, 95.4% of the revenues are to be collected as taxes and duties, and 2.6% and 2% as official grants and other income respectively," said Khachatryan.
The minister specified that taxes and duties are projected in the amount of 1 trillion and 129 billion drams. The government will also get 24 million euros (13 billion drams) as grants from the European Neighborhood program and also another $35.6 million (17.2 billion drams) worth grants for target projects. Other revenues are projected at 23.8 billion drams.
Khachatryan said also 96% or 1 trillion and 244.4 billion drams of the spending are projected as current expenses, and another 129.3 billion drams as non-financial asset spending. He added that next year's spending is 68.1 billion drams higher than this year's one.
According to the minister, 47.3% of the spending will be allocated to education, health, social protection, culture and sport. Another 20.8% will be channeled into defense, national security and preservation of public order and correction facilities.
Approximately 10.6% will be released to economy, 7.2% will be used to repay Armenia's debts, 3.5% will go the communities as budget subsidies, 6.7% are earmarked for the maintenance of public agencies, 1% is meant for science and 0.6 % will be used to form the government reserve fund.
He said the projected deficit (197 billion drams or 3.5% of GDP) will be financed through internal (70.1 billion drams) and external (120.6 billion drams) sources.
The government will provide also a 36 billion government loan to the government of Nagorno-Karabakh Republic. The draft budget will be sent tomorrow to parliament's consideration. . ($1 – 473.71 drams). . --0—