ArmInfo. By the end of 2020, the budget deficit of the Republic of Armenia will reach 459 billion drams, which is 7.4% of the RA GDP. A similar forecast was announced on October 5 by the RA Minister of Finance Atom Janjukhazyan during the sitting of the Standing Committee of the National Assembly of the Republic of Armenia on Financial-Budgetary Issues.
"We plan to cover this deficit by attracting debt. And this will undoubtedly affect changes in the ratio of debt to GDP, "he said. In this context, the RA Minister of Finance drew attention to the fact that in 2019 the ratio of debt to GDP was 49.9%, but in 2020 this figure will approach 67%.
Janjukhazyan called the obvious impact of martial law on the country's economic development. In particular, the minister noted that according to the revised forecasts, GDP by the end of 2020 will decrease by 6.8%, amounting to 6.170 trillion. drams. Tax revenues will also decrease by 35 billion drams to 1.320 trillion. drams. In addition, as noted earlier, military spending will increase by 40 billion drams. In turn, the Chairman of the RA State Revenue Committee Eduard Hovhannisyan agreed with the announced forecasts regarding tax revenues, informing that following the results of 9 months of this year. already collected 1.016 trillion. drams.
Deputy Minister of Economy Avag Avanesyand added that there is no cause for concern due to the increase in the ratio of public debt to GDP, since in 2017 this indicator reached 69%. However, he explained that thanks to the economic successes recorded in 2018 and 2019. the debt to GDP ratio fell to 49%. "I think that next year, due to the growth of GDP and tax revenues, we will be able to approach the 2019 indicator. Therefore, I believe that from a macroeconomic point of view, we are in a fairly good position. Since we have reserves, due to which we will be able to overcome the foreseen expenses>, - the deputy minister explained.