It should be noted that many businesses that have ceased operations are gradually resuming it, and if this trend continues, the state budget revenues are expected to increase, even exceeding the planned figure.
Artsakh State Minister does not rule out that the state budget indicators will exceed the planned ones
STEPANAKERT, APRIL 26, ARTSAKHPRESS: As for the GDP, it amounted to 270.9 billion drams in 2020, leading to a 22.4% decline. According to forecasts, the gross domestic product in 2021 will amount to 206.5 billion drams, leading to a 25.3% economic decline.
Artsakh State Minister Grigory Martirosyan told “Artsakhpress”, noting that taking into account the consequences of hostilities and legislative changes, tax revenues and duties paid to the state budget are projected at 17 billion drams, which is 35.6% of last year’s actual revenues.
In order to comprehensively solve the problems faced by businessmen and in order to create a more favorable tax field for business, legislative changes have been made by defining a large number of privileges, as a result of which revenues less than 8.1 billion drams are expected in 2021, as compared to the previous year, said Martirosyan, noting that during the war, the business directly related to them suffered heavy losses, which negatively affected the amount of taxes to be paid.
The reduction of state budget revenues is also conditioned by the cessation of activities of businesses operating in the territories occupied by Azerbaijan.
Taking account the opportunities for restoring the economy and production opportunities, Martirosyan noted that there are opportunities, but they are few, because the loss is quite large.
“Pre-war Artsakh was self-sufficient in terms of electricity generation. Most of the operating 32 HPPs remained in the occupied territories. Some metal and non-metallic mines and industrial processing capacities have remained in those areas. The Kashen mine is still operating with a very small production capacity. We have lost about 75% of arable land, 85% of pastures, most of the orchards, about 90% of the irrigated areas. We have had great losses in the cattle breeding sector. The livestock has been reduced by more than 50%. Today’s imperative is to develop small-scale production capacities and increase labor productivity; to ensure a high level of quality through the introduction of new technologies that requires large-scale investments,” said the State Minister.
From now on, the steps of the government will be more focused on the implementation of measures to improve the investment field.