New government program for 2017-2022 envisages increase in potential for economic growth

ArmInfo. The new program of the  Armenian government for 2017- 2022 provides for a consistent increase  in the potential for economic growth and ensuring macroeconomic  stability.

To this end, the government plans to improve the management of public  debt, ensuring its stability. In particular, by the end of 2017, is  planned to implement a system for assessing the behavior of  participants in the primary market of government bonds. From the  beginning of 2018, it is planned to have new fiscal rules that do not  impede economic growth and, in the long term, aimed at stabilizing  the debt. Until the end of 2019, the government plans to implement a  new tool for assessing the various effects of fiscal policy on the  economy. Until the end of 2022, it is planned to establish a  budgetary framework that involves a sequential increase in capital  expenditures in the medium term, with the observance, if possible, of  moderate implementation of current expenditures with ensuring their  effectiveness.

At the same time, to facilitate interstate trade and cross-border  operations, the scope of a number of agreements that exclude double  taxation will be expanded. In particular, in the years 2019-2022 is  planned to conclude contracts with at least 5 countries.

The program notes that the revenue management policy will be aimed at  providing an understandable and predictable environment for  businesses and foreign investors, which will enable to fairly  distribute resources in the economy and redirect them to  export-oriented production.

For the purposeful, effective and economical use of funds, the  Government of the Republic in the coming years provides for a  transition from the system for assessing the financial indicators of  programs invested from the state budget to a system of quantitative  and qualitative summary indicators, in parallel with the  strengthening of financial discipline.

In order to take into account and effectively manage the assets and  liabilities of the public sector, as well as for targeted use of  budgetary funds, the government considers it necessary to introduce  new accounting and financial accounting standards.

The government in its program attaches importance to the development  and expansion of the framework of financial markets. Reducing the  shadow economy, launching a funded pension system, and as a result,  the formation of internal savings and their infusion into the  financial system, will allow to expand the tools and frameworks of  the financial market.