Artsakh Republic Draft Law “On the State Budget of the Republic of Artsakh 2021” Submitted to the National Assembly for Consideration
13 January 2021

January 13, the draft law "On the State Budget of the Republic of Artsakh 2021" was presented to the standing committees and factions of the parliament in the National Assembly according to the previously approved schedule. The sitting was chaired by Arthur Harutyunyan, Chair of the Standing Committee on Budget, Financial and Economic Management. The parliament observed a minute of silence in memory of the victims of the Artsakh war before moving on to the agenda of the sitting. Arthur Harutyunyan noted that the discussion of the draft budget was extended for a certain period due to the war and was submitted on December 30, 2020.

Presenting the main financial document of the country, the Minister of

Presenting the main financial document of the country, the State Minister-Minister of Finance Grigory Martirosyan noted that due to many social problems in the post-war period: The 2021 budget policy will be mainly socially oriented.

Presenting the financial indicators envisaged until 2021, the State Minister – Minister of Finance noted that the 2021 budget was drawn up at the beginning of the year, taking into account the aftermath of the war in the autumn. Speaking of the results of 2020 macroeconomic indicators, Grigory Martirosyan emphasized the economic decline registered in all branches of the economy. As a result, the GDP in the first half of 2020 decreased by 1.5% to 129.6 billion drams, with industry recording 3.7%, construction 14%, agriculture, forestry and fisheries - 10.2% decline in real terms. And the war imposed in September had a devastating effect on the economy. According to the State Minister, analyzing certain predictions, it was conditionally registered, that by 2020 we will have a GDP decline of about 15%.

The following indicators are forecast in the main spheres of material production: The volume of industrial production will make about 103 billion drams, decreasing by 40%, the volume of construction - 48 billion drams, having a decrease of 26%, the volume of agricultural production will make about 51.3 billion drams, which will decrease by 28-30% compared to the previous year. Referring to the financial document for 2021, Grigory Martirosyan noted that the gross domestic product (GDP) forecast for 2021 will amount to 224.5 billion drams, predicting a decline of about 25%.

«Revenues next year will amount to 81 billion 830.7 million drams, expenditures - 124 billion 851.2 million drams, as a result of which the deficit will amount to 43 billion 20.5 million drams, » the State Minister said.

In 2021, the state budget own revenues are projected at 17 billion 50 million drams, compared to 56 billion drams last year. Tax revenues will make 17 billion drams, the amount of the budget loan provided by Armenia will make 64 billion 780.7 million drams. The state budget expenditures are envisaged at 124 billion 851.2 million drams, which is 7.8% less than the expenditures envisaged by the previous year's state budget. Expenditure / GDP ratio will make 55.6%, against 46.2% in 2020.

The main expenditure directions of the state budget for 2021 by sectors:

 Agriculture in the amount of 5 billion 91.6 million drams

Economic development programs - 618.3 million drams

The expenses of the program for compensation of utilities of the population of the Artsakh Republic "Subsidizing electricity, gas, communication services" will make 12.0 billion drams.

Social protection - 31 billion 475.1 million drams

Healthcare - 8 billion 750.3 million drams

Education - 14 billion 728.1 million drams

Culture and youth - 2 billion 431.6 million drams

Subsidies provided to community budgets - 2 billion 892.6 million drams.

After presenting the financial forecasts of all spheres of the vital activity of the country, the State Minister - Finance Minister answered the questions posed by MPs Gagik Baghunts, Vladik Kasyan, Davit Galstyan, Metaxe Hakobyan and Davit Ishkhanyan.

NA President Artur Tovmasyan, NA Vice-President Gagik Baghunts, deputies and members of the government took part in the sitting.