Prime Minister's Reserve Fund Increased 16 Times in 2022 Budget

The government’s expenditures have been reduced by a quarter in the budget for the next year, however, the Prime Minister's reserve fund has increased 16 times, reports news.am.

The state budget for 2022 plans to increase state expenditures by 18.2 percent, though this growth is distributed unevenly among various sectors and departments.

Considering the 2020 economic crisis and the war, state resources have been allocated as follows: expenditures for defense will increase by 10.8 percent, social expenditures by 15.1 percent, education by 27.4 percent, national security service by 22.8 percent, central bank by 13 percent, Ministry of Economy by 26.9 percent, and the Supreme Judicial Council by 18.9 percent, among others.

On the other hand, funds allocated for environmental and emergency situations will decrease. Notably, half of the increase in social sector expenditures will go towards the mandatory funded pension system; thus, half of the increased social expenditures in 2022 will not have direct social significance.

As a result, about 83 percent of pensioners and beneficiaries are expected to see their incomes remain the same in 2022, despite an anticipated new inflation rate of 5.5 percent.

At the same time, it is planned that expenditures of the Prime Minister's staff will decrease by 28.6 percent, yet the government’s reserve fund has increased 16 times. This means that the RA government will be able to freely manage the reserve fund's resources without planning and limitations, which will reduce parliamentary control over the effective and targeted spending of state funds.

Typically, reserve funds are spent by governments to address current political and crisis-related issues. In summary, it should be noted that the 2022 state budget is not a budget that ensures radical and revolutionary developments.