17% increase in defense allocations to be directed for ensuring peace and investments

The increase of allocations to the defense field in the 2018 state budget is aimed at ensuring people’s security and increase of investments, Gagik Minasyan, chairman of the parliamentary standing committee on financial-credit and budgetary affairs, told reporters.

He said in 2016 225 billion AMD has been allocated to the defense field, in 2017 this number was 209 billion AMD, but in 2018 246.8 billion AMD investment is expected. This will be an increase of 17% compared to 2017. “The increase is linked with two factors: if we try to ensure investments, which will be the main driving force for our economic growth, the investor should be secured by the possible negative developments, but the poor condition in the defense field is strictly dangerous for investors. At the same time we have an unsettled conflict, and through these allocations we are going to ensure our people’s peaceful living, as well as the peaceful military service of our soldiers”, Gagik Minasyan said.

Compared to 2017, the increase of the 2018 state budget is 100 billion AMD, which, in addition to the defense field, will be directed to the economic field, in particular, the agriculture, construction of roads and irrigation system.

The lawmaker said during the December 5 parliament’s four-day sitting the amended version of the 2018 state budget based on the MPs’ proposals will be discussed.

Under the 2018 state budget draft the revenue will comprise 1 trillion 307 billion AMD, the expenditure – 1 trillion 464 billion AMD, and the deficit – 156 billion AMD. It is expected to ensure 4.5% economic growth, the deficit against the GDP will be 2.7%.