Tuesday, February 9 2021 18:09

ArmInfo. The budget deficit of  Armenia in January-December 2020 amounted to 333.9 billion drams ($  639 million), having jumped 5.2 times on an annualized basis, against  a 39.3% decline in 2019 and a 60.5% decline in 2018. According to the  RA Statistical Committee, the budget revenues of Armenia slowed down  the annual growth from 16.3% to stagnant 0.1%, while the growth of  expenditures accelerated from 12.2% to 16.7%, amounting to 1.560  trillion, respectively. and 1.894 trillion. drams ($ 2.99 billion and  $ 3.6 billion, respectively).

In the structure of income, the share of taxes and duties decreased  in 2020 from 94% to 89%, in absolute terms, decreasing by 5.4% to  1.385 trillion. drams (against 16.4% growth in 2019).

In particular, receipts from all taxes reversed the dynamics from  growth to decline, with the exception of targeted social payments,  for which receipts accelerated growth from 7.5% to 32.6%, amounting  to AMD 24.8 billion. The most significant decline was recorded in  income from income tax - by 36.4% (against 37.5% growth in 2019) - to  148.8 billion drams, followed by the rate of decline followed by  customs duties and state duties - by 28.3% and 27.1% - 68.3 billion  and 33.4 billion drams (against an increase of 18.6% and 21.1% in  2019). A less noticeable deterioration in the trend was recorded in  terms of income: from payments for the use of natural resources and  preservation of the environment - from 17.5% growth to 16.7% decline  to 53.1 billion drams; from turnover tax - from 48.4% growth to 15.9%  decline to 26.6 billion; from excise tax - from 27.2% growth by 10.9%  decline to 123.6 billion; from value added tax - from 15.6% growth by  6.9% decline to 471.6 billion; from income tax - from 23.6% growth to  6.6% decline - to 411.5 billion.

Against this background, the structure of budget expenditures is  growing in all items, except for the purchase of services and goods  (from 23.7% growth by 6.7% decline to AMD 179.2 billion) and interest  payments on external debt (from 17 % growth by 11.3% decline - to  77.9 billion drams). In an upward trend, with an acceleration of  rates, expenses on: subsidies - from 1.9% to 5% (119.1 billion  drams); grants - from 18.7% to 24.6% (186.9 billion); benefits and  pensions - from 6.5% to 23.4% (559.1 billion). Slowed down the annual  growth of expenses on: salaries - from 13% to 2% (171.6 billion  drams); for non-financial assets - from 26% to 21.2% (226.1 billion);  interest payments on state debt - from 13.3% to 4.6% (AMD 164.8  billion).

Note that the calculated AMD exchange rate as of December 31, 2020  was 522.59 AMD / $ 1, and in January-December, the average calculated  AMD exchange rate was 489.01 AMD / $ 1.