Note:
(1) Calculated as a percentage of Armenia’s nominal GDP.
Source: Ministry of Finance.
Expenditures
The Government’s largest areas of spending are: (i) social welfare, which accounted for 26.0% of expenditures in 2013; (ii) defence, which accounted for 15.9% of expenditures in 2013; and (iii) general public services, which accounted for 12.4% of expenditures in 2013. Social welfare includes retirement, survivor and disability pensions, unemployment compensation, allowances to parents of newborn children, as well as certain other social disbursements, and general public services include interbudgetary transfers to local governments and expenses on legislative and executive affairs, financial and fiscal affairs, general research and other administrative expenses.
Total expenditures have grown over the past years, from AMD929.1 billion in 2009 to AMD1,142.9 billion in 2013, an increase of 23.0%. In the three largest areas of Government spending (based on year-end 2013 figures), expenditures grew by 31.9% between 2009 and 2013, with social welfare spending increasing by 22.1%, defence spending increasing by 39.8% and general public services by 46.2%.
In the nine months ended 30 September 2014, expenditures increased by 11.5%, compared to the nine months ended 30 September 2013, driven mainly by spending growth in social welfare, defence and general public services, as well as an increase in interest payments on External Public Debt resulting from the issuance of the 2013 Eurobond.
Between 2009 and 2013, debt service payments increased by 186.5%, from AMD16.3 billion in 2009 to AMD46.7 billion in 2013. This increase was driven by growth in interest payments on Internal Public Debt, which rose from AMD8.8 billion in 2009 to AMD29.9 billion in 2013, and on External Public Debt, which rose from AMD7.5 billion in 2009 to AMD16.8 billion in 2013. See “Public Debt.”
The following table sets forth certain additional information about State Budget expenditures for the periods indicated:
State Budget Expenditures
|
For the year ended 31 December
|
For the nine months ended 30 September
|
|
2009
|
2010
|
2011
|
2012
|
2013
|
2013
|
2014
|
|
(AMD billions, except percentages)
|
Debt service
|
16.3
|
30.4
|
35.5
|
40.7
|
46.7
|
33.0
|
50.3
|
Annual (period) change (%)
|
47.3
|
86.9
|
16.7
|
14.5
|
14.9
|
13.2
|
52.4
|
% of GDP(1)
|
0.5
|
0.9
|
0.9
|
1.0
|
1.1
|
1.1
|
1.6
|
% of total expenditures
|
1.8
|
3.2
|
3.6
|
4.0
|
4.1
|
4.5
|
6.1
|
% of tax revenues and duties
|
2.6
|
4.3
|
4.6
|
4.6
|
4.7
|
4.5
|
6.5
|
Social welfare
|
243.6
|
244.2
|
256.2
|
291.7
|
297.4
|
219.4
|
245.5
|
Annual (period) change (%)
|
14.6
|
0.2
|
4.9
|
13.9
|
1.9
|
2.1
|
11.9
|
% of GDP(1)
|
7.8
|
7.1
|
6.8
|
7.3
|
7.0
|
7.5
|
8.0
|
% of total expenditures
|
26.2
|
25.6
|
26.0
|
29.0
|
26.0
|
29.6
|
29.7
|
% of tax revenues and duties
|
39.0
|
34.9
|
33.0
|
33.2
|
29.7
|
29.6
|
31.5
|
Defence
|
130.2
|
147.6
|
145.5
|
152.8
|
182.0
|
123.8
|
131.1
|
Annual (period) change (%)
|
7.4
|
13.4
|
(1.4)
|
5.0
|
19.1
|
14.6
|
5.9
|
% of GDP(1)
|
4.1
|
4.3
|
3.9
|
3.8
|
4.3
|
4.2
|
4.3
|
% of total expenditures
|
14.0
|
15.5
|
14.7
|
15.2
|
15.9
|
16.7
|
15.9
|
% of tax revenues and duties
|
20.8
|
21.1
|
18.7
|
17.4
|
18.2
|
16.7
|
16.8
|
General public services
|
96.7
|
112.8
|
118.6
|
119.8
|
141.4
|
93.4
|
108.3
|
Annual (period) change (%)
|
3.1
|
16.6
|
5.1
|
1.0
|
18.0
|
13.7
|
16.0
|
% of GDP(1)
|
3.1
|
3.3
|
3.1
|
3.0
|
3.3
|
3.2
|
3.5
|
% of total expenditures
|
10.4
|
11.8
|
12.0
|
11.9
|
12.4
|
12.6
|
13.1
|
% of tax revenues and duties
|
15.5
|
16.1
|
15.3
|
13.6
|
14.1
|
12.6
|
13.9
|
Education
|
107.5
|
97.8
|
106.1
|
102.8
|
103.1
|
72.2
|
75.6
|
Annual (period) change (%)
|
3.9
|
(9.0)
|
8.5
|
(3.1)
|
0.3
|
(2.9)
|
4.7
|
% of GDP(1)
|
3.4
|
2.8
|
2.8
|
2.6
|
2.4
|
2.5
|
2.5
|
% of total expenditures
|
11.6
|
10.2
|
10.8
|
10.2
|
9.0
|
9.7
|
9.1
|
% of tax revenues and duties
|
17.2
|
14.0
|
13.6
|
11.7
|
10.3
|
9.7
|
9.7
|
Public order, security and judiciary
|
69.5
|
67.4
|
72.5
|
76.7
|
91.4
|
61.9
|
69.2
|
Annual (period) change (%)
|
12.6
|
(3.0)
|
7.6
|
5.8
|
19.2
|
22.2
|
11.8
|
% of GDP(1)
|
2.2
|
1.9
|
1.9
|
1.9
|
2.1
|
2.1
|
2.3
|
% of total expenditures
|
7.5
|
7.1
|
7.3
|
7.6
|
8.0
|
8.3
|
8.4
|
% of tax revenues and duties
|
11.1
|
9.6
|
9.3
|
8.7
|
9.1
|
8.4
|
8.9
|
Economic relations(2)
|
133.8
|
112.5
|
84.0
|
71.1
|
128.3
|
47.4
|
48.0
|
Annual (period) change (%)
|
49.7
|
(15.9)
|
(25.3)
|
(15.4)
|
80.5
|
3.8
|
1.4
|
% of GDP(1)
|
4.3
|
3.3
|
2.2
|
1.8
|
3.0
|
1.6
|
1.6
|
% of total expenditures
|
14.4
|
11.8
|
8.5
|
7.1
|
11.2
|
6.4
|
5.8
|
% of tax revenues and duties
|
21.4
|
16.1
|
10.8
|
8.1
|
12.8
|
6.4
|
6.2
|
Health care
|
56.2
|
56.1
|
63.3
|
64.5
|
64.4
|
43.3
|
47.3
|
Annual (period) change (%)
|
12.4
|
(0.2)
|
12.8
|
1.9
|
(0.2)
|
0.1
|
9.1
|
% of GDP(1)
|
1.8
|
1.6
|
1.7
|
1.6
|
1.5
|
1.5
|
1.5
|
% of total expenditures
|
6.0
|
5.9
|
6.4
|
6.4
|
5.6
|
5.8
|
5.7
|
% of tax revenues and duties
|
9.0
|
8.0
|
8.1
|
7.3
|
6.4
|
5.8
|
6.1
|
Other reserve funds(3)
|
33.9
|
21.6
|
36.8
|
41.9
|
43.2
|
18.9
|
15.2
|
Annual (period) change (%)
|
(0.1)
|
(36.3)
|
70.4
|
13.9
|
3.1
|
16.0
|
19.7
|
% of GDP(1)
|
1.1
|
0.6
|
1.0
|
1.0
|
1.0
|
0.6
|
0.5
|
% of total expenditures
|
3.6
|
2.3
|
3.7
|
4.2
|
3.8
|
2.5
|
1.8
|
% of tax revenues and duties
|
5.4
|
3.1
|
4.7
|
4.8
|
4.3
|
2.5
|
1.9
|
Tourism, culture and religion
|
16.3
|
16.1
|
17.7
|
22.8
|
18.6
|
13.7
|
14.3
|
Annual (period) change (%)
|
1.9
|
(1.2)
|
9.9
|
28.8
|
(18.3)
|
(6.5)
|
4.4
|
% of GDP(1)
|
0.5
|
0.5
|
0.5
|
0.6
|
0.4
|
0.5
|
0.5
|
% of total expenditures
|
0.5
|
0.5
|
0.5
|
0.6
|
1.6
|
1.8
|
1.7
|
% of tax revenues and duties
|
2.6
|
2.3
|
2.3
|
2.6
|
1.9
|
1.8
|
1.8
|
Housing and public services
|
21.1
|
42.8
|
43.8
|
14.3
|
21.7
|
12.2
|
19.4
|
Annual (period) change (%)
|
50.7
|
102.8
|
2.3
|
(67.4)
|
51.9
|
54.1
|
59.4
|
% of GDP(1)
|
0.7
|
1.2
|
1.2
|
0.4
|
0.5
|
0.4
|
0.6
|
% of total expenditures
|
2.3
|
4.5
|
4.4
|
1.4
|
1.9
|
1.6
|
2.3
|
% of tax revenues and duties
|
3.4
|
6.1
|
5.6
|
1.6
|
2.2
|
1.6
|
2.5
|
Environmental protection
|
3.9
|
4.9
|
6.6
|
7.0
|
4.6
|
2.7
|
2.7
|
Annual (period) change (%)
|
30.0
|
25.6
|
34.7
|
6.1
|
(34.6)
|
(29.8)
|
(0.4)
|
% of GDP(1)
|
0.1
|
0.1
|
0.2
|
0.2
|
0.1
|
0.1
|
0.1
|
% of total expenditures
|
0.4
|
0.5
|
0.7
|
0.7
|
0.4
|
0.4
|
0.3
|
% of tax revenues and duties
|
0.6
|
0.7
|
0.8
|
0.8
|
0.5
|
0.4
|
0.4
|
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