ArmInfo.European Union is not ready to finance 100% implementation of development programs in Armenia, and in this issue the republic itself must show its participation, RA Prime Minister Nikol Pashinyan stated on March 7 at a government meeting, summing up the results of the visit to Brussels and the talks with the EU top leadership.
According to him, to achieve the goal it is necessary to ensure a high level of tax collection, to improve the tax administration, to ensure the growth of the economy. It is also important, as the Prime Minister believes, to effectively use external sources of financing, the vast majority of which should be directed to the development of infrastructures. However, as Nikol Pashinyan noted, if there are problems related to the ratio of taxes / GDP, government debt management, the question of legislative regulation will arise. "I myself, being a member of parliament, always voted against loan agreements, because I believed that the funds were not used effectively under a corrupt government. Further studies showed the validity of that position, especially when it comes to some programs," Nikol Pashinyan stressed. In this context, he pointed out the need to improve the effectiveness of credit funds.
In order to resolve the issue of manageability of public debt, the government intends to hold talks with the Central Bank, which, according to the head of the Armenian government, will be held within the next month. According to the results of these discussions, a corresponding decision will be taken, which will also be the subject of discussions with public organizations and the country's parliament in order to come to an agreement.
Earlier, ArmInfo, citing RA Minister of Finance Atom Janjughazyan reported that in 2019 Armenia would increase national debt by $ 512 million, of which $ 21 million through the Central Bank. As Atom Janjughazyan stated, loans will be raised to cover the state budget deficit. Thus, in 2019, the state budget deficit of Armenia will make 151.6 billion drams (about $ 313 million) or 2.2% of GDP, against 156.9 billion drams (about $ 325 million) or 2.7% as foreseen in 2018. GDP. The deficit will be financed from external sources - in the amount of 97.5 billion drams (about $ 202 million), and 54.1 billion drams (about $ 112 million) due to internal resources. According to Artur Hambardzumyan, a representative of the State Debt Management Department of the Ministry of Finance of Armenia, next year foreign borrowings in the amount of about $ 152.1 million (74 billion drams) out of the stipulated $ 490 million will be spent on budgetary assistance. Another $ 337.6 million or 164.2 billion drams will be attracted to targeted programs. $ 292.6 million will be spent on servicing borrowings, of which $ 175 million will be used to pay off the principal amount of external debt and $ 117.6 million to interest rates on loans. The largest loan of $ 343 million is planned to be received from Russia, of which $ 192.9 million has been approved. $ 53.1 million is expected from the Asian Development Bank, $ 50.4 million will be raised from the International Bank for Reconstruction and Development, the International Development Association will provide $ 9.7 million, the European Investment Bank - $ 9.4 million, the German KfW Bank - $ 7.5 million, the European Bank for Reconstruction and Development - $ 7.3 million, France will provide $ 3.3 million, the Eurasian Bank - $ 3 million, the International Fund for Agricultural Development - $ 2.8 million and the OPEC Fund for International Development - $ 0.2 million. In general, $ 152 million will be received for budgetary assistance, the energy sector will receive $ 133 million, of which $ 104.8 million will be allocated to the Armenian NPP modernization program. It is noteworthy that various programs of reforming the public sector will attract $ 103 million, and only $ 45 million for road construction, $ 32 million for education, $ 17 million for solving problems in the field of irrigation, $ 5 million for water supply and $ 3 million for garbage collection. To note, in 2019, as a result of fiscal policy, the level of public debt will be stabilized. So, it is expected that the ratio of public debt to GDP from 55% in 2018 will decrease in 2019 to 53.43% of GDP. In general, by the end of 2019 the state debt will grow to $ 7.468 billion.
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