Preliminary discussions of the 2020 budget draft have begun in the standing committees of the National Assembly.
In his speech, Prime Minister Nikol Pashinyan said that revenues of 1 trillion 602 billion drams are planned for 2020. He compared the figures with 2018, saying that revenues will grow by 27.4 percent. Under the budget draft, expenditures next year will grow by 30 percent compared to 2018. He said he is comparing with 2018 because within the framework of the revolution he set clear indicators for budget growth.
“It is very important to note what kind of growth we have in investments in human capital compared to 2018. Calling these figures impressive, I am assessing them very mildly, because in the healthcare sector we have a 33 percent increase in budget allocations. In the fields of education, science, culture and sport — a 41 percent increase, in the social sphere — a 21 percent increase. Recently there have been many discussions related to defence spending. I want to note that compared to 2018, for 2020 we have planned a 25.3 percent increase in budget allocations. Regarding military expenditures, I want to mention that we have a legislative regulation, and military expenditures must not exceed 4 percent of GDP. We must remain within these frameworks, but it is also very important to note that we have military expenditures that will be carried out with a somewhat different logic. And I hope that we will increase the scale and tangible results of the fight against corruption, and those results will also be directed towards raising the level of Armenia’s defence capability,” said Nikol Pashinyan.
He noted that in the budget draft there is a somewhat conservative approach regarding economic growth indicators. According to the Prime Minister, it is slightly lower compared to the government’s political and economic aspirations, but in the medium-term expenditure programme adopted this year they have recorded that the government’s political task is to transition to a model of high economic growth.
“And that model is essentially recorded for the period of 2020-2022. And we hope to achieve economic growth of 7, 8 and 9 percent respectively in that period. I consider this realistic, also taking into account the sentiments we have in our economy. To be honest, I believe that today the economic revolution in Armenia is gaining momentum, it is a reality, and that revolution can now already be seen with the naked eye. Huge investments are being made in Armenia. Allow me to say that now, as Prime Minister of Armenia, I am optimistic about the development and future of Armenia’s economy and confident more than ever. Armenia’s economy has gathered very good momentum, and it is the task of all of us to ensure that not only is that momentum not broken, but that it accelerates along the way, and we reach such indicators that socio-economic changes proceed more quickly, effectively and become more visible for all citizens of Armenia,” said Nikol Pashinyan.
