Parliament Approves Amendments to the Republic of Armenia 2020 State Budget Law

Parliament has approved a draft law amending the "Law on the State Budget of the Republic of Armenia for 2020." According to the draft, in response to the restrictions imposed due to the spread of coronavirus and to counter risks from the external environment, it is proposed to implement a support package amounting to 150 billion drams. As a result, the real GDP is expected to decrease by about 2 percent in 2020.

The opposition LHK faction voted against the bill.

From the support package, 25 billion drams will be allocated to businesses and social support programs, 80 billion drams will go toward projects aimed at long-term economic development, and 20 billion drams will be reserved for necessary reallocations.

Given the conditions of economic decline, it is estimated that in 2020 the tax revenues will decrease by approximately 169.1 billion drams compared to the scenario outlined in the state budget. By maintaining the level of expenditures and including the 150 billion dram economic support packages, the state budget deficit will reach 5.0% of GDP, and the need for additional financing for the state budget will be around 260 billion drams.