state revenues

In 2022, state budget revenues amounted to AMD 2.06 trillion, which is 22.5% more than in 2021 and 5.9% more than the government’s initial plan. The increase in budget revenues was mainly due to the increase in tax revenues, which was largely fueled by the increase in Armenia’s economic activity as a result of the Russian-Ukrainian conflict.

2022 RA state budget revenues have registered a historical record

In 2022, the revenues of the state budget amounted to AMD 2 trillion 63 billion, which was 22.5% or AMD 379.3 billion more than in 2021 and is a record high in the history of independent Armenia.


Initially, the government expected a revenue of AMD 1 trillion 948 billion for 2022, which means that the planned state budget revenues were exceeded by 5.9% or AMD 115.3 billion.

Sources of state budget revenues

In 2022, taxes and duties paid to the state budget accounted for 93.4% of the state budget revenues or AMD 1 trillion 926 billion, grants provided by foreign countries and international organizations accounted for 0.7% or AMD 15 billion of revenues and 5.9% or AMD 122.1 billion consisted of other incomes, which include interest payments received from the allocation of temporary free funds of the state budget and deposits, dividends received from investments made in the capital of legal entities, interest payments on the loans issued by the state, etc.

The actual revenues received from internal sources exceeded the initial plan of the government, however, the official grants provided from external sources were 64% or AMD 26.8 billion less than initially expected, which was due to a number of circumstances. In particular, the funds provided by foreign countries and international organizations were not received in full, probably due to geopolitical developments. For example, it was planned to implement two measures in the field of public finance management with a grant from the Russian government, also it was initially planned to create centers of joint use and/or excellence in the field of science with EU funding, which were not implemented. The underperformance was also partly due to Armenian dram appreciation and differences between expected and actual foreign exchange rates.

What contributed to the increase in tax revenues and duties

In 2022, compared to 2021, tax revenues and state duties increased by 21.4% or AMD 339.1 billion, which was mainly due to the increase in revenues from VAT, profit tax and income tax. The growth of economic activity in the country, the growth of exports and imports, as well as the increase of jobs and average wages contributed significantly to the increase of tax revenues of the state budget in 2022. It should be noted that the flow of labor and capital from Russia to Armenia due to the Russian-Ukrainian war, as well as the sharp increase of demand in Russia for products of Armenian origin and supplied by Armenia, had a significant positive impact on these developments.

In 2022, duties paid to the state budget amounted to AMD 106.8 billion, which is about 60% or AMD 39.9 billion more than in 2021. In 2022, 70% of state duties or about AMD 75 billion accounted for the fees charged for issuing licenses, and patents (permits), which have doubled compared to the previous year. This was mainly due to the imposition of a state fee for issuing licenses, permits or certificates to export copper and molybdenum concentrates from September 4, 2021, to September 10, 2022.


At the same time, VAT, income tax, and excise tax in the amount of AMD 261.9 billion were returned to taxpayers from the 2022 state budget, 45.3% or AMD 81.7 billion more than in 2021. In addition, VAT refunds include VAT refunds to exporters, and income tax refunds to borrowers and co-borrowers in terms of interest paid for servicing mortgage loans make up the majority of the income tax refunds. Regarding the latter, the amount returned in 2022 was AMD 36.5 billion, 60.8% or AMD 13.8 billion more than in 2021. Moreover, if VAT, income tax, and excise tax refunds were included in the budget, tax revenues and state duties would have increased by 24% instead of 21%.

In summary, it should be noted that 2022 was a fairly favorable year for the revenues of the RA state budget, mainly due to the positive influence of external factors on the Armenian economy.


This article was prepared by the Armenian Center for Socio-Economic Studies (ACSES) with the support of the Open Government Partnership through the EU for Integrity Programme for the Eastern Partnership, funded by the European Union. Its contents are the sole responsibility of ACSES and do not necessarily reflect the views of OGP or the EU.


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ACSES is an independent think tank with a mission to improve public policymaking through socio-economic research and analysis.

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