May 24, a joint sitting of the standing committees of the National Assembly was convened, where the annual report on the implementation of the state budget of the Artsakh Republic for 2020 was presented. The Head of the National Assembly Artur Tovmasyan, members of the Government, deputies were present at the sitting.

Before presenting the state budget report, the Minister of State-Finance Grigory Martirosyan referred to the main socio-economic indicators of the republic, presenting the macroeconomic environment in which the budget execution was carried out.

The disasters of 2020 (spread of a new type of coronavirus and the war unleashed by Azerbaijan on September 27) have caused a lot of damage to the normal development of the country's economy. In case of emergency and applicable restrictions, also due to the hostilities, a decline was registered in almost all sectors of the economy, as a result of which in 2020 the gross domestic product in real terms decreased by 22.4% and amounted to 270.9 billion drams (compared to 342.5 billion drams in 2019) in a deflator of 2.0%. was 76.8%. The basis for such a decline were the branches of material production, ijn particular, the decrease in value added of industry (-9.2 percentage points), trade and services (-6.4 percentage points), construction (-2.4 percentage points) and agriculture (-2.1 percentage points).

The following indicators have been registered in the main spheres of material production:

- The volume of industrial output amounted to 103.2 billion drams, decreasing by 36.3% in real terms compared to 2019,

- The volume of construction amounted to about 50.3 billion drams, decreasing by 22.2% as compared to the previous year,

- The volume of agricultural production amounted to 56.5 billion drams, compared to 70.6 billion drams last year, or decreased by 21.7%.

The average monthly nominal salary in 2020 increased by 7.7% compared to 2019, amounting to 188,960 drams (175,522 drams last year).

The foreign trade turnover in 2020 amounted to 417.8 million US dollars, a decrease of 36.3% compared to 2019.

Imports of goods decreased by 24.7% to $ 280.8 million, and exports by 51.6% to $ 137.0 million.

Inflation in 2020 was 0.8 percent.

The actual revenues for the own revenues of 56 billion 937.1 million drams planned by the state budget for 2020 made 49 billion 498.7 million drams or the planned index was fulfilled by 86.9%, which in turn is 17.7% or 10 billion 636.3 million drams less than the actual revenues collected in 2019.

For the envisaged 55 billion 969.9 million drams of tax revenues and state duty, 47 billion 781.1 million drams were paid to the state budget or the planned index was fulfilled by 85.4%.

The "Taxes / GDP" ratio was 17.6%. In total, more than 78% of tax revenues came from large taxpayers.

The amount of the budget loan received from the Republic of Armenia made 75 billion 124.0 million drams.

The state budget surplus amounted to 2 billion 064.9 million drams, which was mainly directed to the repayment of previously borrowed funds.

The actual expenditures of the state budget of the Artsakh Republic for 2020 made 122 billion 557.9 million drams, ensuring 89.7% of the planned index.

The state budget was executed without accumulating current debts on expenditures. Salaries, pensions, benefits, and other social expenditures were funded in full, as well as emergency warfare programs.

The main expenditure directions of the 2020 state budget were as follows:

Expenditures in the field of economic relations amounted to 18.1 billion drams (increasing by 31.0% or 4 billion 277.5 million drams compared to the previous year), the majority of which was directed.

In the field of agriculture, the expenditures of which made 5 billion 437.3 million drams against the envisaged 6 billion 218.9 million drams or were made by 87.4%.

Expenditures under the capital investment program amounted to 24 billion 077.4 million drams, which is 95.5% of the planned index. Compared to 2019, expenditures on the capital investment program increased by 3.4% to about 22.2% of the total budget expenditures.

The allocated funds were directed to the development of various sectors of the economy and infrastructure, as well as to the implementation of social work.

Expenditures in the field of social protection actually amounted to 23 billion 762.9 million drams against the planned 26 billion 119.8 million drams, or the program was implemented by 91.0%, which was directed to the implementation of more than 50 programs in the social sphere. Social protection is one of the sectors with the largest share in the expenditure structure, accounting for 19.4% of the total budget expenditures.

Expenditures in the field of education against the planned 16 billion 266.2 million drams actually made 14 billion 287.4 million drams or were made by 87.8%, and in the total budget expenditures made 11.7%.

The financing expenditures in the field of healthcare actually amounted to 6 billion 583.9 million drams or 84.3% against the planned 7 billion 811.7 million drams (5.4% of the total state budget expenditures).

Expenditures in the field of culture and youth actually amounted to 2 billion 846.3 million drams against the planned 3 billion 070.8 million drams.

At the end, the State Minister noted that the state budget for 2020 has been implemented based on the principles of objectivity and targeting with the aim of mitigating the impact of the coronavirus and hostilities, on the well-being of our people.

After Grigory Martirosyan's speech, the deputies asked questions.