YEREVAN, July 4. / ARKA /. Armenia’s government budget deficit is projected at 2% of GDP or AMD 105 billion for 2015, Finance Minister Gagik Khachatryan said Thursday as presented the 2015-2017 spending program at a regular Cabinet session.

The program will be used as a basis for the 2015 government budget.

The minister said the 2015 budget revenue will be projected at AMD 1 trillion 228 billion drams or 24.34% of GDP. This is 8.1% or by AMD 92 billion more than the indicator projected in the 2014 government budget.

“The growth of revenue is mainly due to expectations for a larger tax revenue, which is planned to increase by AMD 75 billion, and government grants and other funds that are though to amount to AMD 10.3 billion and AMD 6.87 billion respectively,” he said.

In his words, revenue in 2016 is projected to be AMD 1 trillion 333 billion and to male up 24.13% of GDP – 8.6% or by AMD 105 billion more than the 2015 projection.

The revenue growth is mostly due to the tax revenue that is expected to increase by AMD 128 billion and government grants and other funds, which are believed to increase by AMD 16.9 billion and AMD 5.6 billion accordingly.

The 2017 budget revenue is expected to amount to AMD 1 trillion 479 billion and to make up 24.34% of GDP – 10.9% more than the 2016 indicator.

“The revenue growth is mainly due to the tax revenue that is expected to increase by AMD 147 billion as government grants and other funds are thought to shrank by AMD 0.7 billion and AMD 1.4 billion respectively,” Khachatryan said.

He said the 2015 budget spending is projected at AMD 1 trillion 331 billion or 26.38% of GDP – 6.8% more than the 2014 indicator. Deficit is projected at AMD 105 billion or 2% of GDP.

The 2016 budget spending is planned at AMD 1 trillion 434 billion or 25.95% of GDP (7.7% more than the 2015 budget indicator) with an AMD 100-billion deficit that will make up 1.8% of GDP.
The 2017 budget expenses are planned to total AMD 1 trillion 589 billion making up 26.16% of GDP (18% more than in the 2016 budget).

Khachatryan said AMD 12 billion is planned to be allocated for defense in 2015, AMD 19 billion in 2016 and 21.7 billion in 2017.

He said AMD 1 billion will be earmarked for education in 2015, AMD 1.2 billion in 2016 and AMD 1.6 billion in 2017.

In the 2014 consolidated government budget, revenue is projected at AMD 1 trillion 135 billion, spending at 1 trillion 245 billion and deficit at AMD 110 billion or 2.3% of GDP.

GDP growth is projected at 5.2% and a 12-month inflation rate at 4% (±1.5%). ($1 – AMD 407.99). ----0---