ArmInfo. The most effective means for managing the public debt is to create conditions for the growth of the Armenian economy. This May 29, presenting in the country's parliament a report on the implementation of the state budget of the country in 2017, said Minister of Finance Atom Janjughazyan.
According to him, last year the republic attracted more external financial resources than it did capital investments. Nevertheless, it was possible to ensure GDP growth of 7.5%. The revenues of the state budget last year amounted to 1,237.2 billion drams, which is 5.6% more than the same period in 2016. At the same time, expenses increased, making 1503.9 billion drams, which is 3.8% more than in 2016. As a result, the deficit of the state budget in 2017 was equal to 266.7 billion drams. Moreover, the deficit significantly decreased due to the increase in the national debt, in particular, due to the Russian military loan in the amount of 180.1 billion drams. Due to this, the deficit in 2017 amounted to 4.8% of GDP, instead of 5.5% in 2016.
Speaking about the state debt, Atom Janjughazyan reminded that the states with a debt-to-GDP ratio of 50% are considered high risk. In Armenia, this indicator reached the level of 47.6%. Despite the stability of the situation with the manageability of public debt, nevertheless, this issue should be at the center of the government's attention, since otherwise any initiative to develop the economy will be jeopardized. The minister noted that as a result of the implementation of the fiscal policy on current expenditures, it was possible to save 24.7 billion drams, and for capital expenditures - 48 billion AMD.
According to the main financial document of the country adopted by the parliament, the total revenues of the state budget for 2017 were to be 1.21 trillion AMD (the ratio of income to GDP - 22.4%), of which taxes - 1.135. billion drams. Expenditures were to be 1.360 trillion. (the ratio of expenditures to GDP is 25.2%), and the deficit is 150 billion drams (the deficit-to-GDP ratio is 2.8%).
According to the National Statistical Service of Armenia, Armenia's GDP grew by 7.5% in 2017 to 5.580 trillion drams ($ 11.6 billion).