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By Aram Achemyan

The government plans to increase Armenia’s revenues in next year's state budget by almost 30 percent, and the expenditures—by more than 18 percent, which, however, according to economists, is unrealistic.

The draft state budget for 2022 was approved at Thursday’s Cabinet session and submitted to the National Assembly.

But taking into account the dynamics of the previous years, the 2022 budget has set a high target whose foundations were not laid during 2020-2021.

Nonetheless, according to the government, 2.18 trillion drams will be spent next year, which is 18.2 percent more than the planned expenditure budget for 2020; and this is in the case when the current authorities have not been able to fulfill the expenditure indicators of the 2020 state budget.

It is noteworthy that in 2022, the authorities plan to increase state budget revenues by 28.9 percent; this will be implemented mainly through tax revenues and collection of state duties. In fact, the government will tighten tax administration, and may also increase the tax burden in some domains, as such a flow of tax revenues cannot be expected in the conditions of only 7-percent economic activity.

At the same time, in 2022 it is planned to reduce the state budget deficit by 29 percent, and this will allow curbing the national debt which has been progressively growing in recent months.

In conclusion, it should be noted that Armenia’s state budget for 2022 is not realistic taking into account the dynamics of recent years and the existing internal and external risks.

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