ArmInfo. There is no alternative to Armenia's accelerated economic development, Armenia's Minister of Finance Tigran Khachatryan stated in Parliament on Tuesday.
The 2023 budget programmes will focus on security environment, amplifying economic opportunities, human capital development and social protection.
"There is no alternative to Armenia's accelerated economic development. Growing tax revenues, targeted expenditure programmes, new borrowings to finance the budget deficit and enhancing the debt management efficiency are the focus of our fiscal policy aimed at the priority development of the private sector and a favorable macroeconomic environment," the minister said.
The 2023 draft budget was drawn up amid serious international and regional challenges. The year has seen greater global economic instability, with low-rate international trade, more expensive and labor- intensive transportation, rising prices for goods and services, which, in turn, has had a negative impact on Armenia's economic environment, with higher economic risks. However, despite the aforementioned uncertainties, economic activity surpassed all expectations - 14.1% this January-September. As a result, the government-set tax revenue target will be exceeded.
"This will enable us not only to finance this year's on-budget expenditures, but also allocate additional funds to new security, economic and social programmes and expedite the implementation of the government-set tasks," the minister said.
This year can see a record-setting economic growth in the past 15-20 years. Next year, the economic growth is expected to be the benchmark for efficiency of reforms and of Armenia's economic policy.
Next year, the Central Bank of Armenia (CBA) will continue its policy of high refinancing rates aimed at the target of 4% by the end of next year.
Under the 2021-2026 government programme, 7% annual GDP growth is expected in Armenia. The annual GDP growth is expected to reach 7%, with the tax-GDP ratio to be 23.2%, with a 0.5% point rise each following year, with the figure to reach 25% in 2025.
The latest economic developments and AMD appreciation reduced the government debt: 60.3% of the GDP by the end of last year against less than 53% expected by the end of this year. According to the 2023 draft budget, the government's debt is to be reduced to 50% of the GDP.
In 2023, Armenia's tax revenues are to reach AMD 2,204bln - AMD 280mln more than the adjusted figures for this year and AMD 360mln more than budgeted for 2022.On-budget expenditures are to total AMD 2,590bln (27.8% of the GDP) or 18.3% more than budgeted for 2022. This will allow the government to increase the funding of socio-economic programmes and security initiatives. The budget deficit will be 3.1% of the GDP, near the target. Efficient management of national debt is expected to play a key role in national debt management.