Wednesday, November 14 2018 16:30

ArmInfo.A break has been announced in the National Assembly of Armenia during the discussion of the draft state budget of the country for 2019.

According to Deputy Speaker of Parliament Arpine Hovhannisyan,  according to the current legislation, the break is announced for 4  days.  Within 24 hours, the NA MPs have the opportunity to submit  their proposals on the draft basic economic law of the country, after  which the government, having discussed these proposals, will enter  the parliament with the final version of the draft state budget.

To recall, on November 1, discussions on the draft budget for 2019  started in the standing committees of the parliament. As expected,  the document will be discussed by the legislator on November 13. The  project was approved by the Cabinet on September 27 and became the  first major financial and economic document prepared in the form of  program budgeting.

Thus, according to the draft budget, in 2019 in conditions of  economic growth of 4.9% and growth of gross fixed capital formation  of 6.1%, the forecasted growth in exports of goods and services in  GDP will be 41% instead of the 38,7%. expected by the end of this  year. According to the results of 2019, per capita GDP in Armenia is  expected to reach $ 4,604 instead of $ 4,280 predicted by the end of  this year. At the same time, at the end of 2015, the figure was $  3,512. The nominal GDP of Armenia in 2019, according to the draft  budget for the next year, will grow by about 560 billion - from  6.193.0 billion drams expected by the end of 2018 ($ 12,752.6  million) to 6,756.2 billion drams ($ 13,717.5 million) pledged in the  project. GDP growth is expected to be ensured by a 0.5% increase in  net indirect taxes (0.6% in 2018), 2.5% growth in the services sector  (4% in the current year), construction will increase by 0, 4% (0.6%  in 2018) agrosector - 0.7% (0.6% in 2018), industry with an increase  of 0.8% (0.9% in the current fiscal year).  The following year's  consolidated budget in terms of revenues is estimated at 1.533.6  billion drams (without revenues from inter-budgetary transfers)  instead of 1.333.5 billion drams in 2018, and in terms of expenses -  1.685.2 billion drams (without receipts from inter-budgetary  transfers), against 1.500.5 billion AMD this year, the deficit is  about 151.6 billion drams or 2.2% of GDP, against 156.9 billion drams  pledged for 2018 or 2.7% of GDP, but revised to 103.5 billion drams  (1 7% / GDP). In 2019, capital spending from the current 2.4% of GDP  will increase to 3.2% of GDP - to 220 billion drams. Current  expenditures will amount to 1,422.7 billion drams (21.1% / GDP),  instead of the current 1.312.3 billion drams (21.2% / GDP). The  deflator index will be 104%, against 104.4% predicted by the end of  this year.  State treasury revenues will make 1,490.6 billion drams  (1.354.8 billion drams this year) or 22.1% of GDP, of which tax  revenues and state fees will be 1, 399.2 billion drams or 20.7% of  GDP, instead of 1.255.8 billion drams or 20.3% of GDP in 2018,  expenses will amount 1 trillion 642.2 billion drams against the  current 1,458.3 billion drams. Community budgets for 2019 are  estimated to be 138.9 billion drams (including official grants from  the state budget) in the line of income, and 138.9 billion drams of  expenses.  This year, a figure of 130.1 billion drams was laid. Other  budget revenues will be 52.4 billion drams next year, instead of 23.9  billion drams for the current year, official grants - 39 billion. The  ratio of investments to GDP in 2018 is projected at 23.3% instead of  23.6% in 2019. 12-month inflation is expected to be at 4% with a  permissible fluctuation limit of +/- 1.5%.

Next year, as a result of fiscal policy, the level of public debt  will be stabilized. Thus, it is expected that the ratio of public  debt to GDP will decrease from 55% predicted by the end of 2018 to  53.43% of GDP, and the ratio of government debt to GDP by the end of  2018 will be reduced from 53.4% to 49.7% . In general, by the end of  2019, the state debt will grow to $ 7.468 billion with the expected  budget for the current year of about $ 7.2 billion, or $ 7.053  million revised by the Ministry of Finance or 55% of GDP, and the  government debt will make $ 6 billion 844.5 million as of December  31, 2019, as noted in the budget draft for the next year, the figure  will reach $ 7.468 billion (estimated exchange rate of the Armenian  dram to the dollar $ 1 = 483.38 drams ). In 2018, it is expected to  attract credit resources in the amount of $ 446 million, of which $  31 million through the Central Bank. In 2019, it is planned to raise  $ 512 million, through the Central Bank line $ 21 million.