YEREVAN, July 1. /ARKA/. Armenia’s budget revenue collection rate in the first five months of 2016 improved by 1.2 percent from the year ago to more than 441.4 billion drams, according to the National Statistical Service (NSS).

Taxes and duties increased by 2.3% to more than 420.1 billion drams, while VAT collection rate declined by 8.1% to 146.9 billion drams. Excise taxes grew by 28.3% to 21.8 billion drams, income taxes grew by 22.8% to. 58.2 billion drams and profit taxes grew by 6.5% to 125.8 billion drams.

Other budget revenues amounted to 18.9 billion drams, down from 25.1 billion drams collected in January-May 2015, while the amount of official grants totaled more than 2.3 billion drams against 568.1 million drams in the same period last year.

The government spending, according to NSS figures, grew by 5.7% to 496 billion drams. Current expenditures grew by 5.7% to 484.3 billion drams. Of that amount 163.9 billion drams were paid as social security benefits and pensions (4.6% growth). Some 61.2 billion drams were grants (growth of 8.1%), 50.5 billion drams were paid as pubic sector salaries, a growth of 3.2%, 57 billion drams were spent on purchase of goods and services, a decline of 36.9 %, 42 billion drams were paid as interests (36% growth), 43.7 billion drams were paid as subsidies and 65.7 billion drams were other expenses, a growth of 6.1%.

Operations with non-financial assets amounted to 11.7 billion drams. As a result the state budget deficit in January-May 2016 amounted to 54.6 billion drams against 36.1 billion drams in the same period 2015.

The 2016 state budget calls for 1 trillion and 373.7 billion drams in revenue and 1 trillion and 183 billion drams in spending. The projected deficit is 197 billion drams or 3.5% of GDP. ($ 1 - 476.68 drams). -0-