Armenia's parliament adopts 2019 government budget

Armenia's parliament adopts 2019 government budget

Armenia's National Assembly approved the government budget for 2019 at the meeting today.

As many as 66 MPs voted for the budget, four voted against it and two abstained.  

MPs from the Republican Party of Armenia Eduard Sharmazanov, Arpine Hovhannisyan and Armen Ashotyan said before the voting that, regardless of their faction’s decision, they intended to cast their votes against the draft budget, ARKA reported.

The draft budget for 2019 approved last month by the government calls for 1.49 trillion drams ($3.07 bln) in revenue and 1.64 trillion drams ($3.38 bln) in spending. It expects capital expenditures to grow to 3% of GDP, up from anticipated 2.8% in 2018. 

Tax revenues in 2019 are expected to make 1 trillion and 396 billion drams, which will enable the government to increase its spending to 1 trillion and 614 billion drams. The budget deficit is projected at 2.2% of GDP or about 151.6 billion drams ($312 mln).

Also 44% of the spending will be allocated to social and cultural sectors, 24% are earmarked for defense, security and public order protection, 12.3% will be provided to the economy, about 10% of the state budget will be used for servicing public debt, 3.2% will be provided as subsidies to communities and 5.8% will be given to state apparatus.