YEREVAN. – The government of Armenia has approved the 2019 State Budget draft, which Minister of Finance Atom Janjughazyan presented at Thursday’s Cabinet meeting.

As per the draft, the 2019 State Budget revenues will be around AMD 1.462 trillion, the expenditures will total AMD 1.614 trillion, and the deficit will make up AMD 151.6 billion.

Janjughazyan noted that the outlook for Armenia’s economic growth in 2018 was revised, and therefore now it is expected to be 6.5 percent—instead of the previous 4.5 percent.

He added that since the base has changed for 2019, the outlook for next year has been reduced from 5.3 percent to 4.9 percent. 

“[But] not only will this not bring a reduction, but we will have an around AMD 130bn more nominal GDP,” the finance minister added. “[But] this change hasn’t caused budgetary risks. It’s forecasted that inflation will be 2.7 percent, which is within the permissible range.”

In his words, a 2.3-percent capital expenditure growth is expected in Armenia in the current year, and it will total 3 percent next year.

“The budget deficit will be 2.2 percent of the GDP,” Janjughazyan added.

As per the minister, Armenia’s national debt will total 50.4 percent, both in 2018 and 2019.

Atom Janjughazyan informed that the bill on the 2019 State Budget shall be sent to the National Assembly—for debates—on October 1.