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The Minister of Finance of the Artsakh Republic presented the Draft Law of the State Budget for 2020 in the Government meeting

On November 14 the minister of finance of the Artsakh Republic Artur Harutyunyan presented the Draft Law "On 2020 State Budget of the Artsakh Republic" in the Government meeting. At first the minister touched upon the economic situation of this year in country and presented some macroeconomic projections.” 10.4% economic growth fixed for the first nine months of this year give an opportunity to expect greater temps of economic growth for the 2019 than it was planned in 2019 draft law. According to the projections in 2019 gross domestic product (GDP) will be 340.9 miliard drams, ensuring 9.1% economic growth. Deflator will make 0.7%.”-said Artur Harutyunyan. In 2020 gross domestic product is predicted to be 375.6 miliard drams, ensuring 8% real growth in condition of 2% deflator. Inflation will make about 3% +/-1%. Presenting basic indices of the draft law of the Artsakh Republic "On State Budget of 2020 of the Artsakh Republic ", the minister noted that when drawing up the budget for the next year they were guided by the program provisions of the President of the Republic for 2017-2020, which are directed to the strong economic growth, development of priority sectors of economy and improvement of business sphere.
“State budget revenues for the coming year will amount to 120 miliard 906.5 million drams, and expenditures - 120 miliard 775.6 million drams. The budgeted surplus (profits) will make 130.9 million drams. Proper incomes of the state budget are planned to be 54.6 million drams or 3.2% including tax revenues and duties which will make 54.2 miliard drams or by 4.5% less than in last year, as a result of which the predictable coefficient “Taxes/GDP” will be 15.4%. Decrease in own income is mainly due to lower expected tax revenues from the mining sector, the main causes of which are international copper prices and lower copper content in the ore.”,- Artur Harutyunyan.
Referring to the expenditure directions, the Minister noted that by 2020 State budget expenditures are projected at 120 miliard 775.6 million drams, which is 5.6% more than the state budget expenditures for the current year. Expenditures in GDP will make 32.2% against 33.6% this year.
Next year it is planned to increase teachers salaries and pensioners pensions. In particular, expenditures for education, science and sports in the state budget for 2020 amount to 16 miliard 328.7 million drams or 10.4% more than planned for 2019, of which 11 miliard 151.2 million drams will be spent on public schools, which is more than in the current year or by 11%, which is mainly due to 10% increase in salaries of teachers working in general education institutions since January 1, 2020 and a modification of the minimum wage resulting in the average monthly calculated salary of 3600 pedagogical rates (including salaries, physical education, training organizers, training salaries) per unit will make 161.7 thousand dram, including additional remuneration.
Spending on social protection in the draft state budget for 2020 is 27 miliard 65 million drams, or 3 miliard 423.9 million drams more than planned for the current year, which is the largest share of the actual budget expenditure structure, accounting for 22.4% of total spending.
The increase in allocations is mainly due to an average 10% increase in pensions from January 1, 2020, for which additional 1 miliard 195.7 million is envisaged.
The Minister then presented the draft law on amendments to the Law “On Minimum Wages”. It is planned to increase the minimum monthly wage in the republic by 2020, which will be 68,000 drams compared to 55,000 in 2019. The increase in the minimum wage, including the private sector, will include about 15000 hired workers, whose additional income will amount to more than 2.5 miliard drams per year.
Government approves drafts: they shall be submitted to the National Assembly in the prescribed manner.
  
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