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On November 17, the National Assembly began the debate of the draft law on the RA State Budget for 2022.

The RA Minister of Finance Tigran Khachatryan thanked the deputies for debating and presenting proposals at the NA Standing Committees.

It was noted that draft budget was formed, taking as a basis the distinct priorities on the security, the economic and social spheres established by the programme of the Government for 2021-2026. In the coming year, the prior target was set the solution of the security issues, the development of the education systems, the inclusive and qualified infrastructures.

The Minister has underlined that the state budget for 2022 was formed during the hard period, when the consequences of the pandemic and war are not overcome yet. In such hard situation, however, the executive body succeeded to manage the main risks, which could impede the further development of the economy. Though 7.4% economic fall and about 80bln AMD reduction of tax revenues were recorded, nevertheless the Government succeeded to fulfill all assumed obligations, going to financing in bigger amount of deficit, than it was designed.

As a result, in 2020 the Government succeeded to preserve the macro-economic stability, and in the first half of the year it also recorded about 5% high rate of the economy recovery.

The Minister also expressed hope that the economy recovery would also continue in recent months of the current year, which would become a reliable basis for the economic growth to be designed in 2022.

It is expected that in 2022, the services, the construction and the industry would promote the economic growth.

In the coming year the state budget expenditures will be 2trillion 190bln, which is by 204bln AMD or by 10.3% more than the expecting expenditures in 2021. 357bln AMD will be allocated for the capital expenditures, which is 4.5% of the gross domestic product (GDP) and by 60% more than the allocation of the current year. The revenues will be 1trillion 946bln AMD, which is by 289bln AMD or by 17.5% more than the allocations of 2021. The prevailing part of the revenues will be the tax revenues.

The budget deficit will be 243bln AMD.