YEREVAN, October 30. /ARKA/. Armenian government will allocate more budget funds to defense and law enforcement institutions in 2013 to offset their social pays, which will be taken from their employees’ salaries in accordance with the new income tax law that will take force on January 1, 2013, Deputy Finance Minister Pavel Safaryan said Tuesday during the budget hearings in National Assembly.
Now the major portion of the monthly social insurance payment is paid by employers, while after January 1 it will be fully taken from employees’ salaries. However, employers ought to raise their employees’ wages so that employees have their actual wages unchanged after the deductions.
In the 2013 draft budget, the government earmarks AMD 30.8 billion for the Police Department’s needs. This amount is larger than that in the previous year’s budget by 22.2% or by AMD 5.1 billion.
Safaryan said AMD 14.3 billion is earmarked to the National Security Service in the 2013 draft budget – 23.9% or AMD 2.7 billion more than a year earlier, and AMD 2.297 billion to the State Security Service – 30% or AMD 534 million more than in the 2012 budget.
In the 2013 consolidated budget, revenue is projected at AMD 1 trillion 31 billion, expenditure at AMD 1 trillion 151 billion and deficit at AMD 124 billion or 2.6% of GDP. Twelve-month inflation is projected here at 4±1.5% and GDP growth at 6.2%.-0---