According to the Governor of the Central Bank Martin Galstyan, the Central Bank was guided by presenting assessments on the performance to ensure medium-term debt stability, fiscal policy orientation and position, as well as to promote long-term growth. In terms of macro-environment in 2021, after the crisis in 2020, the RA economy recovered faster than expected, recording a level of economic growth of 5.7%. He assured that the increase of both the global demand and the domestic demand, mainly the consumption of the private sector promoted the economic growth. Capital investments have been restored to some extent due to the growth of both state and private investments. The high inflationary environment in Armenia has been maintained throughout the year. In order to ensure price stability, the Central Bank pursued a policy of tightening monetary conditions in 2021, gradually neutralizing the stimulating position. During the year, the policy interest rate was raised by about 2.5 percentage point, as a result of which, 12-month inflation was 7.7% at the end of the year.
In order to maintain fiscal policy, to restore medium-term economic growth, to create a favorable condition, the fiscal policy was conditioned by a certain reduction of debt through smooth consolidation in 2021. The latter reflected the position of a relatively restraining policy, accompanied by an improvement in program indicators of tax collection and their consistent government spending.
As a result of the restoration of economic growth, as well as the change of tax legislation and the improvement of the administration, 14.6% growth in tax revenues was registered in 2021.
It was noted that tax revenues in GDP have increased by 0.3 percentage point, which is still lower than the target set by the Government programme. The public expenditure policy was guided by the principles of economic growth and gradual debt stability in 2021, including the importance of realization of expenditures and programmes to mitigate the effects of the pandemic and the 44-day war. As a result, compared to the previous year, the state budget expenditures have increased by 5.8% due to the increase in current expenditures.
The Governor of the Central Bank of the Republic of Armenia answered the deputies’ questions, which were mainly related to the dram appreciation, import and export of goods.
The RA Chairman of the Audit Chamber Atom Janjughazyan presented the conclusion of the Audit Chamber on the state budget execution for 2021.
According to the speaker, the Audit Chamber conducted 72 audits of the sample on more than 91% of the budget expenditures in 18 departments. There were 138 discrepancies in 13 departments and 26 misstatements of about 0.15% of the budget expenditures, which were included in the current conclusions of the 6 departments in the budget reports.
The Audit Chamber received reasonable assurance during the 2021 audits that the financial statements are free from material statements in all respects.
It was noted that misstatements can occur as a result of an error or omission, as well as a result of clear signs of a crime and will be considered significant, when it is reasonably expected that they may affect the decision-making process of users of separate financial statements.
The Audit Chamber, having conducted an audit on the fulfillment of the requirements of the procedures established for conducting financial transactions using the state budget funds, came to the following conclusion. According to the Audit Chamber, the financial statements in all essential respects present the regulated activities of the formation and implementation of state budget revenues.
Atom Janjughazyan assured that the Audit Chamber endorsed the state budget execution for 2021.
The issues were debated in the regular sittings of the National Assembly held on June 15.