Armenia’s Jan-Feb government budget performed with AMD 4.9 billion surplus

YEREVAN, March 30. /ARKA/. Contrary to projection of AMD 26.9 billion deficit for the first quarter, Armenia’s Jan-Feb government budget was performed with AMD 4.9 billion surplus, the press office of Armenian Finance Ministry reported on Wednesday.

The surplus was due to relatively high revenue to spending.

As a result, of AMD 28.6 billion, which was projected as quarterly expenses, only AMD 2.7 billion was spent in January and February.

Surplus financing from domestic sources amounted to AMD 2.8 billion, of which AMD 170.3 million was borrowed, and AMD 2.7 billion came from financial assets.

The projected AMD 7.7-billion outside budgetary financing was not handled.

According to the ministry’s report, the budget revenue grew 10.9% or by AMD 11.2 billion over first two months of 2011, compared with the same period a year earlier, reaching AMD 114.4 billion by late February.

Taxes, state duties and obligatory social payments filled 94.6% of the revenue, and other receipts formed 5.4%.

Proceeds of out-of-budget funds of state establishments exceeded AMD 2.2 billion in Jan-Feb 2011.

Taxes and state duties totaled AMD 89.1 billion (63.9% of the quarterly program), growing 10.8% or by AMD 8.7 billion over the two months of this year, compared with the same period of the previous year, mainly thanks to growth in VAT, royalty, income tax receipts as well as fees for permission to use radio frequencies.

The budgetary spending amounted to AMD 108.5 billion in January and February 2011, ensuring 52.4% of the planned quarterly spending and growing 3.1% or by AMD 3.3 billion, compared with the first two months of 2010.

Current expenses totaled AMD 102.3 billion in Jan-Feb 2011 constituting 53.4% of the projected quarterly indicator.

They grew 3.6% or by AMD 3.6 billion, compared with the same months of the previous year. This growth was due to the growing payroll expenses, social payments, bills for goods and services, repayment of the state debt and other expenses.

Of the total amount of current expenses, AMD 16.3 billion was spent in January and February for paying bills for goods and services, AMD 9.5 billion for payroll payments for public sector employees and AMD 570.7 million as mandatory social payments.

The mentioned expenses showed 10.7%, 10% and 6.6% year-on-year growth respectively.

The government targeted AMD 5.4 billion for serving the state debt – 8.9% greater than the amount spent for the same purpose a year earlier.

Of this amount, AMD 4.1 billion was allocated for serving internal debt, and AMD 1.3 billion for paying foreign debt.

The 2011 government budget was passed by Armenian National Assembly on December 9.

The budget spending may exceed AMD 1.001 trillion in 2011, revenue is planned to total AMD 852 billion and deficit is projected at AMD 148.6 billion. GDP growth is projected at 4.6%. -0–

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