Wednesday, December 6 2023 11:04

ArmInfo.Armenia's Parliament is discussing the final version of the 2024 draft budget. 

Minister of Finance Vahe Hovhannisyan noted that 20 proposals were  received from parliament deputies for the final version of the draft  law, most of which related to increasing costs for the implementation  of certain programs. Of these proposals, 11 were either accepted or  taken into account, 4 proposals were not accepted. As a result of the  initiatives received, it became necessary to change the original  version of the draft state budget in terms of revenues, expenses and  deficits.

Thus, the minister emphasized, in 2024, in conditions of ensuring 7%  GDP growth, revenues of the state treasury of Armenia will amount to  AMD 2,723bln (25.9% of GDP), and expenses - AMD 3,206bln drams (30.5%  GDP). The growth of the GDP deflator will be 4%, with an expected  3.5% by the end of this year.  and actual 8% for 2022. According to  the document, GDP growth in the republic will be ensured mainly by an  increase in added value in the main sectors of the economy: in  industry - by 4.7%, in agriculture - 3.5%, in construction - 8.9%, in  the service sector - 7.9%, net taxes - 7.3 %. Consolidated state  budget revenues will amount to AMD 2,815.1bln (excluding revenues  from interbudgetary transfers), consolidated expenses - AMD 3,298bln  (excluding interbudgetary revenues). Community income is projected at  AMD 248.7bln (including official grants from the state budget).

Current expenses will reach AMD 2,511.2bln (23.9% of GDP), instead of  AMD 2,091.3bln (22.1% of GDP) expected at the end of this year. And  actual AMD 1,898.7bln (22.3% of GDP) for 2022.

Expenditures on non-financial assets will amount to AMD 695.3bln  (6.6% of GDP), against AMD 562.1bln (5.9% of GDP) expected at the end  of 2023 and AMD 380.4bln (4.5% GDP) for 2022.

The deficit of AMD 482.9bln will be financed both from internal  resources - in the amount of AMD 351.1bln, and from external sources  - AMD 131.8bln. Of the AMD 1,723bln of state treasury revenue, AMD  2,613bln will be tax revenues and state duties (24.9% of GDP),  against the expected AMD 2, 277.8bln for this year. (24.1% of GDP)  and AMD 1,962.5bln (23.1% of GDP) over the past year. AMD 22.276bln  will be official grants and AMD 87.676bln will be other income.

Average inflation is forecast at 3.2%, instead of the expected 2.2%  by the end of 2023 and the actual 8.6% for 2022.

Armenia's public debt will amount to AMD 5,314bln (50.5% of GDP),  instead of AMD 4, 659bln expected by the end of 2023 (49.3% of GDP),  and AMD 4, 659bln, fiscal for 2022 (49 .2% of GDP). The government's  debt will amount to AMD 5,082.9bln (48.3% of GDP) or $11.892bln  against AMD 4,446.1bln (47% of GDP) or $10.910bln, expected at the  end of 2023 and AMD 3,969.7bln or $10.086bln for 2022 (46.7% of GDP).

In 2024, the government will need 805.2 billion drams to repay and  service the debt, of which 483.0 billion drams will be debt  repayment, and 322.2 billion drams will be interest payments.

As of November 1, 2023, the following exchange rate were in effect:  AMD 409.39/$1, AMD 424.48/EUR 1, AMD 488.46/ 1 pound sterling, AMD  54.98/1 yuan, 4.33 AMD/RUB 1.