Government approves draft state budget for 2016

Government approves draft state budget for 2016

PanARMENIAN.Net - The government approved on Thursday, October 1, the draft state budget for 2016, which provides a 2.2% GDP growth, ARKA reports.

As Finance Minister Gagik Khachatryan told a Cabinet session, the GDP deflator index is provided at 4%, the 12-month inflation at 4% (± 1.5%) and the budget deficit at 3.5% of GDP.

According to the official, the draft budget calls for AMD 1 trillion and 373.7 billion in revenues and AMD 1 trillion and 183 billion in spending. The projected deficit amounts to AMD 197 billion.

"According to the draft state budget, taxes and duties are expected to make up the 95.4% of the total revenues, while official grants and other income will complete the remaining 4.6%," Khachatryan said.

According to the Minister, 47.3% of the spending will be allocated to education, health, social protection, culture and sport. Another 20.8% will be channeled into defense, national security and preservation of public order and correction facilities.

Approximately 10.6% will be spent on economy, 7.2% will be used to repay Armenia's debts, 3.5% will go the communities as budget subsidies, 6.7% are earmarked for the maintenance of public agencies, 1% is meant for science and 0.6 % will be used to form the government reserve fund.

Khachatryan said the deficit will be financed through internal and external sources.

The government will also provide an AMD 36 billion loan to the Nagorno Karabakh Republic. The draft budget will be introduced to parliament on Friday.

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