Today the Government introduced the 2016 RA State Budget draft to the National Assembly. “Due to foreign developments, economic growth will be more modest in 2016,” said RA Deputy Minister of Finance Pavel Safaryan.
He said that in 2016 the Gross Domestic Product (GDP) is thought to increase by 2.2 %, the inflation during 12 months will be +/- 4.15 %, and the budget deficit will be 3.5 % of GDP. The state debt is thought to be 5 billion 565 dollars, 86.6 percent being the foreign debt, and so it will approach the 50 % mark of general foreign debt.
Pavel Safaryan stated that, as far as budget revenue is concerned, the income will form 1 zillion 183 billion AMD, the expenses will total 1 zillion 373 billion AMD, and the deficit will form 193 billion AMD. Taxes and dues will make up a big part of the revenues, forming 94.4 %, that is 1 zillion 129 billion AMD.
According to the 2016 budget draft the predominant part of the expenses (90.1 %) are current expenses, and 9.9 % are the expenses connected with financial assets. The expenditure part of the budget, compared to last year, increased by 58 billion AMD.
Pavel Safaryan stated that the predominant part of the state budget expenses, about 47.3 %, was allocated to the social branch. The volume of the expenses directed to the spheres of defense, maintenance of public order, and national security makes up 20.8 % while the expenses of economic branches total 10.6 %, the state debt service – 7.2 %, and the support of local self-government bodies – 3.5 %.
The 7.2 % of expenses is allocated to social security. As opposed to this year, more money (plus 4 %, that is 15 billion AMD) will be provided for this branch. That is caused by the introduction of cumulative pension system and, starting from next year, the lump-sum maternity benefit which will also be paid to non-working women. The birth rate is anticipated to increase which is why the need for lump-sum maternity benefit will increase as well. On the other hand, the pensions have not been reviewed, therefore there will be no increase.

Iravaban.net