Armenian parliament okays budget deficit rise to offset coronavirus shock consequences
29.04.2020,
16:54
The Armenian Parliament approved today a set of amendments to the law On the State Budget for 2020, which call for revision of budget indicators to offset the consequences of the COVID-19.
YEREVAN, April 29. /ARKA/. The Armenian Parliament approved today a set of amendments to the law On the State Budget for 2020, which call for revision of budget indicators to offset the consequences of the COVID-19. Only the Bright Armenia opposition party's faction in the parliament voted against the amendments.
Minister of Finance Atom Janjughazyan said under the changes the originally projected GDP growth of 4.9% was reduced to 2% Also, the original GDP volume of 7.095 trillion drams was reduced to 6.485 trillion drams and the earlier projected deficit budget of 160.7 billion drams was raised to 324 billion drams.
The minister said these changes will not affect the budget spending items. He added that the share of tax revenues in GDP will drop from the earlier projected 22.6% to 22.1%. More precisely, under this scenario, tax revenues will drop by 169.1 billion drams to 1 trillion 433 billion drams.
The minister said as a result of budget redistribution and taking into account the assistance package of 150 billion drams, the state budget deficit will grow to 5% of GDP from the previous 2.3%. The government will need to secure additional funding of 260 billion drams, he said.
Armenia declared a 30-day state of emergency on March 16 to curb the spread of coronavirus. It also imposed restrictions on free movement of citizens and banned also some types of economic activity. On April 13, the government extended the state of emergency for another month allowing simultaneously some businesses to reopen.
As of April 29, Armenia's confirmed cases of coronavirus have grown to 1,932; 900 patients have recovered and 30 people have died ($1 - 479.63 drams). -0-
Minister of Finance Atom Janjughazyan said under the changes the originally projected GDP growth of 4.9% was reduced to 2% Also, the original GDP volume of 7.095 trillion drams was reduced to 6.485 trillion drams and the earlier projected deficit budget of 160.7 billion drams was raised to 324 billion drams.
The minister said these changes will not affect the budget spending items. He added that the share of tax revenues in GDP will drop from the earlier projected 22.6% to 22.1%. More precisely, under this scenario, tax revenues will drop by 169.1 billion drams to 1 trillion 433 billion drams.
The minister said as a result of budget redistribution and taking into account the assistance package of 150 billion drams, the state budget deficit will grow to 5% of GDP from the previous 2.3%. The government will need to secure additional funding of 260 billion drams, he said.
Armenia declared a 30-day state of emergency on March 16 to curb the spread of coronavirus. It also imposed restrictions on free movement of citizens and banned also some types of economic activity. On April 13, the government extended the state of emergency for another month allowing simultaneously some businesses to reopen.
As of April 29, Armenia's confirmed cases of coronavirus have grown to 1,932; 900 patients have recovered and 30 people have died ($1 - 479.63 drams). -0-
