On November 2, the discussions on the 2019 Draft State Budget continued at the NA Standing Committees. Acting Finance Minister Atom Janjughazyan, presenting the draft, noted that the important components of the tax system changes are: increasing investment attractiveness, effective distribution of public revenues and strengthening fiscal sustainability.
“The Tax Code aims at having a stable and predictable tax system that will make the country more attractive for investors. We have tried to diagnose problems and understand what additional changes are needed”, - said the Acting Minister.
According to Atom Janjughazyan, profitability in the economy is higher in the non-exporting sector. “It is necessary to stimulate export growth and try not to make the tax system a hindrance to new investments in the exporting sector”, - said Janjughazyan.
Talking about the changes in the tax system, the Acting Minister also noted that amendments to the Tax Code are aimed at simplifying the existing mechanisms and reducing the tax burden.
According to the 2019 Draft Budget, tax revenues comprise 94 percent in total revenues, grants - 2.6 percent, other revenues - 3.5 percent. Revenues expected from the off-budget turnover are also part of revenues - about AMD 28 billion.
According to the draft, the Ministry of Foreign Affairs will be allocated with AMD 14.9 billion in 2019, with the bulk of them – 69 percent or AMD 10.3 billion – for organizing the activities of accredited diplomatic missions of foreign countries and international organizations. The Ministry will use AMD 1.8 billion for the implementation of the Government's foreign policy-making functions; the membership fee to international organizations will make about AMD 2.5 billion, or about 17 percent of the programs implemented by the Ministry of Foreign Affairs. AMD 183 million will be used for the implementation of protocol services.
The budget for 2019 envisages to allocate to the Ministry of Diaspora with AMD 1 billion 149 million, with a significant share of maintenance costs of the Ministry.