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The Draft Law "On the Republic of Artsakh State Budget 2022" Was Submitted to the National Assembly for Discussion
26 November 2021

November 26, the joint sitting of the NA Standing Committees took place chaired by Gegham Stepanyan, Deputy Chairman of the Standing Committee on Budget, Financial and Economic Management. The draft law " On the Republic of Artsakh State Budget 2022" was presented for discussion at the sitting.

The Minister of Finance of the Republic of Artsakh, Vahram Baghdasaryan, was authorized to present the draft by the President of the Republic of Artsakh. The Minister noted that the draft law was developed taking into account the negative consequences of the epidemic and the war unleashed by Azerbaijan in 2020, as well as the challenges facing the state. The 2022 state budget expenditures will be aimed at ensuring the security of the population, implementation of the programs ensuring sustainable economic growth and rapid economic development, expansion of opportunities and capacities of citizens to live a prosperous life, development of institutions ensuring state-building and defense.

Referring to the macroeconomic indicators of 2021, Vahram Baghdasaryan spoke about the economic decline registered in all sectors of the economy, as a result of which the GDP in the first half of 2021 decreased by 28.3%, amounting to 98.8 billion drams. Negative GDP growth was registered at the expense of industry - 13.9%, at the expense of construction - 0.4%, at the expense of agriculture, forestry - fisheries - 5.0%, at the expense of trade - services - 8.1% : According to the Minister of Finance, in 2021 the GDP will make 236.5 billion drams, leading to about 17.3% economic decline in the conditions of 5.5% deflator.

According to forecasts, the volume of 2022 GDP will make 263.7 billion drams, the growth - about 8-0%, in case of the forecasted 3.2% deflator. Inflation is forecasted at 3%.

"State budget revenues in 2022 will amount to 184 billion 3000 million drams, expenditures - 214 billion 662.3 million drams, the deficit will amount to 30 billion 3623 million drams, which will be financed from borrowed funds," said the Minister of Finance.

Own revenues of the 2022 state budget are projected at 40.3 billion drams, of which tax revenues and state duties will amount to 40.0 billion drams, which is about 24 times more than the planned revenues for 2021, and 33% of the expected revenues. The size of the budget loan in 2022 will make 144.0 billion drams, 79 billion 219-3 million drams more than the approved index for the previous year.

The state budget expenditures are envisaged at 214 billion 662.3 million drams, which is 622% more than the state budget expenditures approved last year. The level of expenditures in GDP will make 81.4%, compared to 58.9% in 2021.

The main expenditure priorities of the 2022 state budget by sectors are as follows:

Agriculture - 6 billion 139.7 million drams

Economic development programs - 366.8 million drams

The expenses of the "Subsidizing electricity, gas, communication services" program for the compensation of the communal services of the population of the Artsakh Republic will make 7 billion 800.0 million drams / from January 1, 2022 to March 1 /

Artsakh Investment Fund - 40 billion drams

Capital investments - 34.5 billion drams

Social protection - 52 billion 5642 million drams

Health care - 15 billion 500.0 million drams

Education - 17 billion 264.1 million drams

Culture, youth and sports - 1 billion 918.0 million drams

Community budgets - 4 billion 090.7 million drams

From January 1, 2022, it is planned to increase the pensions of military, social and officer servicemen by 20%. The amount of state benefit will increase by 20% on average.

After January 1, 2022, the third and every parent in the family will be appointed and until the child turns 6 years old, financial support in the amount of 50,000 AMD will be paid. 5 billion 334.8 million drams is envisaged for providing rent to displaced families.

In order to solve the socio-psychological problems created in Artsakh after the 2022 war, the government of Azerbaijan has initiated a 9-20% increase in the salaries of state employees, 17-20% in the field of healthcare, 20-25% in the field of education and agriculture.

On average, compared to 45 billion 2300 million drams directed to salaries envisaged by the 2021 state budget, the draft state budget 2022 envisages to increase expenditures in that direction by 8 billion 451.7 million drams or 18.7% more.

After presenting the main bill of the republic, տhe Minister of Finance answered the questions posed by MP Gagik Baghunts.

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

 

 

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