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15.6.2022

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15.06.2022
Parliament Debates Annual Report on RA State Budget Execution for 2021
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The state budget for 2021 was approved and implemented in accordance with the goals of the Government action plan. The fiscal policy implemented within these borders was aimed at guaranteeing macroeconomic stability, increasing growth and development potential, resolving priority issues through social and economic programs. The Minister of Finance Tigran Khachatryan said about this at the NA sitting held on June 15.

The Minister presented the annual report on the state budget execution of the Republic of Armenia for 2021 to parliament for debate.

According to the Minister of Finance, 2020 was a very difficult year. The pandemic and 44-day war posed challenges, which could lead to economic and social upheavals. The task of managing these phenomena, mitigating their negative consequences, restoring economic activity and stabilizing the foundations of development was a guide for the microeconomic policy, including the fiscal policy, in 2021.

The state revenues, according to Tigran Khachatryan, have increased significantly, especially due to the growth of tax revenues. The expenditures envisaged by the budget increased significantly and were supplemented in new directions during the year, the public debt management became more reliable, and it reduced the macroeconomic risks arising from the high level of debt.

The Minister reminded that the annual economic growth was 5.7%, instead of pre-planned 3.2%. “The economic growth was mainly due to the growth of services, which formed 4 percentage point. Half of the growth was provided by accommodation and catering services,” Tigran Khachatryan noted.

The reduction of agriculture has had a negative impact on economic growth. The overall growth rate decreased by 0.2%.

The annual economic growth, which was originally planned at 3.2%, was 5.7%.

The revenues of the RA state budget for 2021 have increased due to the economic recovery and the growth of tax revenues.

The total revenues of the budget were 1 trillion 683.8 billion AMD, increasing by 7.9% compared to the last year. Revenue performance for the adjusted plan was 99.6%. 94.2% of the revenues was formed by tax revenues, 1 trillion 587 billion AMD. It is 22.7% of GDP in 2021.

Compared to the same period last year, taxes increased by 14.6%, mainly due to the increase in tax bases, consumption and imports, as well as the introduction of stamp duty and export duties on concentrates.

The annual tax revenues were about 147 billion AMD more than originally planned in the annual budget. The tax revenue program of the adjusted plan was carried out by 100.2%.


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