The next year’s budget is planned in the amount of about 3 trillion drams, the revenues – in the amount of approximately 1.6 trillion drams and the deficit – in the amount of approximately 340 billion drams. The deficit is 3.2% of the gross domestic product (GDP). If necessary, the volume of the deficit may increase. The Deputy Chair of the RA NA Standing Committee on Economic Affairs Babken Tunyan stated this during the RA NA regular sitting regarding the budget allocations and problems with the main financial document of the coming year.
Touching upon the importance of the capital expenditures, he noted that in the next year’s budget it is planned to make capital expenditures of approximately 700 billion drams, which are aimed at ensuring long-term economic growth. “The amount of the capital expenditures has increased 6-7 times compared to 2018. It will make up 6.6% of our GDP, which is quite a serious indicator,” Babken Tunyan said. In this context, the MP opined that the Government with its ambitions and financial possibilities is much more ambitious than the potential of the private sector.
According to Babken Tunyan, if at one time it was possible to carry out several tens of kilometers of repair work per year only with our resources, now this potential has increased. In the case of the urgency of those costs, the deputy highlighted the participation of the international partners and mentioned as an example the recently signed Agreement with the Iranian side, according to which 32 kilometers of the southern part of the North-South road with tunnels and bridges will be built. He expressed hope that this pace will lead to the reality that our local organizations will also be able to perform works of the same quality, speed and volume.
Referring to the statement of the opposition partners that only 10 billion AMD is designed in the budget for the forcibly displaced people from Nagorno-Karabakh, Babken Tunyan stressed that this does not correspond to the reality: It is a conditional number, with the decisions taken at the moment, we are talking about several tens of billion drams. He reminded that a part of the costs of support programmes for our compatriots forcibly displaced from Nagorno-Karabakh has not yet been reflected, some programmes are in the process of being developed.
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The Deputy Chair of the Committee also touched upon the progressive growth of the expenses in the fields of education and healthcare in the next year’s budget.
Emphasizing the results, he underlined. “For example, we have significantly increased funding for science. Another question is what result we will get in return.”
The Deputy Chair of the Committee drew attention to the fact that the budget provided an unprecedentedly large reserve fund of 94 billion drams. According to him, this means that we will provide ourselves with a safety cushion that will protect us from unforeseen situations and allow us to solve problems quickly.
The MP also referred to the disconnection between the sectoral strategies and budgets of various institutions, highlighted the combined work, spoke about the improvement of tax administration legislation. “Collecting taxes is not a goal, but a means to solve the problems facing the state. Although the tax authority sets a higher benchmark in front of itself every year and tries to ensure it and ensures it, this should be balanced so that we do not leave the impression of tax terror”, Babken Tunyan stated.
The deputy proposed to vote for the document, noting that the budget creates a basis for continuing long-term, sustainable growth.
National Assembly of the Republic of Armenia
